CALGARY, Alberta (September 6, 2023) – Exro Technologies Inc. (TSX: EXRO, OTCQB: EXROF) (the "Company" or "Exro"), a leading clean-technology company that develops new generation power-control electronics that expand the capabilities of electric motors and batteries, today announced a significant corporate milestone with the official start of production (“SOP”) of the company’s patented Coil Driver™ technology. The milestone is backed by purchase orders from Italian OEM supplier HB4 Group and Canadian electric bus and commercial vehicle manufacturer Vicinity Motor Corp (NASDAQ: VEV) (TSXV: VMC) ("VMC").
Start of Production
“On behalf of everyone at Exro, we are thrilled to announce the official start of production of our Coil Driver™ technology”, said Exro CEO Sue Ozdemir. “This achievement marks a tremendous milestone in bringing our next-generation technology to market from proof-of-concept on paper over three years ago, to now being in production for on-road customer vehicles. We are thankful for the ongoing support of our shareholders who have weathered many storms along the way. They have remained steadfast in our shared vision of a sustainable future that requires innovative technologies that increase efficiency and change the way the world consumes energy.”
Exro’s Manufacturing Center is a 37,000 ft2 world-class automated inverter manufacturing and assembly facility. Boasting a class 10,000 clean room, the facility brings European automotive standards for technical cleanliness and track and trace to North America. The only facility of its kind in North America, the manufacturing center fills a unique gap by providing customers with a strategic onshore supply chain solution for key powertrain components. This net-zero targeted facility will be capable of producing 100,000 Coil Driver™ units per year, per an 8-hour work shift.
The manufacturing center complements Exro’s research and development, design, and testing innovation centers in Calgary, Alberta, and Mesa, Arizona as well as Exro Vehicle Systems EV integration services in Ann Arbor, Michigan, to provide end-to-end full-stack technology solutions for customers.
To celebrate the start of production, Exro will host an exclusive invitation-only event for distinguished guests, key partners, media, and employees on Wednesday, September 20th, 2023. The event will be accompanied by a live webcast with replay available. Details to follow.
Initial Purchase Orders
The start of production is backed by initial purchase order commitments for low-voltage Coil Driver™ units from Italian OEM supplier HB4 Group, and high-voltage Coil Driver™ motor-inverter systems to Canadian electric bus and commercial vehicle manufacturer, Vicinity Motor Corp.
“We are very pleased to work with Exro to bring leading sustainable electric vehicles to customers in Italy and Europe”, said HB4 Chief Executive Officer Renato Bruno. “Exro’s technology is truly next generation as demonstrated in our on-road testing which demonstrated an exceptional increase in performances and range from 100km to more than 120 km in a Casalini commercial delivery truck”.
HB4 is an Italian Tier-1 OEM supplier of vehicle lighting systems, radio keyless systems, batteries, electric motors, fuel tank caps, and other components to main automotive companies worldwide such as Casalini, Ducati, Ferrari, KTM, Aprilia, Harley Davidson, MV Agusta, and others. In 2023, Exro’s low-voltage Coil Driver™, paired with an HB4 group electric motor designed and manufactured by SM4E part of HB4 Group, was integrated by HB4-Exro and commissioned in two applications – a small passenger vehicle and a small commercial truck manufactured by Casalini in Italy. Under the purchase order agreement, HB4 Group placed an initial order of 500 units to supply its customers with a baseload of Coil Drivers™, backed with growing volumes over an initial 3-year term. The order follows on-road testing with Casalini through Q2 2023 which demonstrated a more than 20% range increase over HB4’s predecessor powertrain inverter technology. Together, HB4 and Exro will co-market our products in Europe and North America on a non-exclusive basis.
Vicinity Motor Corp
“We are excited to advance our relationship with Exro to the next stage“, said Vicinity Chief Executive Officer, William Trainer. “Together we are on a mission to move people more efficiently and effectively while supporting a cleaner and more sustainable planet.”
Deliveries of high-voltage systems, consisting of a 400V TSA-motor paired with Exro Coil Driver™, are scheduled to begin by mid Q4 2023. Initial deliveries are intended for electric bus applications destined for operations across North America. Exro and Vicinity intend to unveil their combined next generation technology for electric busses at the APTA Expo, the world’s largest public transportation showcase, in Orlando in early October.
Positioning to Unlock a Significant Total Addressable Market in Commercial e-Vehicles
Unlike passenger vehicles currently, commercial vehicles are being regulated and incentivized to convert from combustion to electric within set timelines. This large secular shift is contributing to a significant opportunity for Exro. According to the latest Bloomberg NEF Electric Vehicle Outlook report, the market opportunity for Coil Driver™ is forecast to grow at an annual CAGR of 22% between 2023 and 2030 to ~$45 billion.
During the remainder of 2023, Exro is scheduled to integrate Coil Driver™ products with a host of customers in Canada, Europe, South America, and the United States. The focus over the coming months is on successful customer integrations and real-world applications. The on-road miles driven, including completing third-party track testing in Q4, are anticipated to build credibility while demonstrating top-tier miles per kWh efficiency. Exro will leverage the information collected to continue to unlock the global commercial e-vehicle space through 2024 and beyond.
For additional information on Coil Driver™ please follow this link.
About HB4 Group
HB4 Group is a holding family business operating in the automotive, industrial, real estate and interior led light design sectors in Italy and Europe. HB4 group balances the technological know-how and increases innovative features of the investee companies through the synergy between various specific skills with the purpose of an increasingly global projection. HB4 proposes to redesign the management and financial structure of the investee companies in order to release capacities for innovation within a balanced growth scenario and productive financial development. For more information, please visit www.hb4.com
About Vicinity Motors Corp.
Vicinity Motor Corp. (NASDAQ: VEV) (TSXV: VMC) ("VMC") is a North American supplier of electric vehicles for both public and commercial enterprise use. The Company leverages a dealer network and close relationships with world-class manufacturing partners to supply its flagship electric, CNG, and clean-diesel Vicinity buses, as well as the VMC 1200 electric truck to the transit and industrial markets. For more information, please visit www.vicinitymotorcorp.com.
About Exro Technologies Inc.
Exro Technologies Inc. is a leading clean technology company that has developed new generation power control electronics that change how the world optimizes energy by expanding the capabilities of electric motors and batteries. The company’s innovative technologies serve to bridge the performance-cost gap in e-mobility (Coil Driver™) and stationary energy storage (Cell Driver™), and act to accelerate adoption towards a circular electrified economy by delivering more with less – minimum energy for maximum results.
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