Exro Names Re:Build Manufacturing Its Exclusive Cell Driver™ Manufacturing Partner and Announces New Channel Partnership Agreements

May 8, 2023

At a Glance

Exro accelerates its energy storage business, naming Re:Build Manufacturing its exclusive manufacturing partner and establishing new channel partnership agreements:

  • Exro announces US-based Re:Build Manufacturing is its exclusive manufacturing partner for Cell Driver™ Energy Storage, thereby outsourcing product assembly to an industry expert.
  • The partnership with Re:Build Manufacturing provides Exro the ability to quickly scale to capture the significant opportunity in energy storage while removing all future capital expenditure and inventory working capital requirements associated with Cell Driver™ manufacturing from Exro’s balance sheet.
  • Exro also announces new channel sales partnerships with PVCA, ProSolar, Shaw Solar, and High Point Electric, renewable energy and energy management integrators that cover customer networks in California, Colorado, Florida, the Caribbean, and regions within Canada.
  • Cell Driver™ is on track for UL certification in early Q3 2023, to be followed immediately by start-of-series production with in-field pilots and deliveries.
Exro Names Re:Build Manufacturing Its Exclusive Cell Driver™ Manufacturing Partner and Announces New Channel Partnership Agreements

CALGARY, Alberta (April 17, 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, is pleased to provide an update on commercialization efforts for its Cell Driver™ Energy Storage System (“Cell Driver™”). Re:Build Manufacturing (“Re:Build”) is now Exro’s exclusive manufacturing partner for Cell Driver™. Exro also announces new channel sales partnership agreements with renewable energy and energy management integrators that provide access to commercial and industrial (“C&I”) markets in California, Colorado, Florida, the Caribbean, and regions within Canada.

“We continue to make steady progress advancing our go-to-market strategy for our Cell Driver™ technology in order to satisfy the growing demand for energy storage,” said Exro CEO Sue Ozdemir. “Our partnership with Re:Build provides us the ability to leverage a world-class manufacturing partner to immediately scale operations and eliminate from our balance sheet the significant capex and working capital that would otherwise be required. In addition, our new channel partners amplify our reach to commercial and industrial customers who want to save money on increasing utility costs, secure a reliable backup source of energy, and contribute to the sustainability of the communities in which they operate. As we prepare to achieve UL certification in the next few months and scale our energy storage business, this opportunity to unlock value for our shareholders is significant.”

Re:Build Manufacturing Partnership

Re:Build (https://rebuildmanufacturing.com/) is a network of businesses that combine cutting-edge enabling technologies with operational superiority in aerospace and defense, cleantech, health, industrial equipment, lifestyle, and mobility. The company’s expertise is in product innovation, advanced components, systems production, and industrial automation. Its customers value it as a trusted manufacturing partner.  

Under the partnership, Exro will provide Re:Build with the battery control system power electronics and Re:Build will be the exclusive manufacturer of Exro’s Cell Driver™ cabinets for an initial term of five years. In exchange for this exclusivity, Re:Build will pass along to Exro 50% of any savings created by the manufacturing process. Re:Build will also set up and manage a highly efficient supply chain that will include components it manufactures and those it purchases, and it will assemble and test the finished products. Re:Build will be responsible for all capital expenditures, supply chain, and inventory working capital requirements associated with manufacturing the Cell Driver™, thereby removing considerable future funding and working capital requirements from Exro’s balance sheet. Built in the United States, the Cell Driver™ will also qualify for ‘Buy America’ incentives available to customers.

Channel Partnership Agreements

Exro’s go-to-market strategy for its Cell Driver™ Energy Storage system is to access C&I markets through a network of renewable energy, energy management, and electric vehicle charging infrastructure integrators and distributors that provide access across North America. This strategy is intended to accelerate and amplify Exro’s market presence, targeting these channel partners growing demand for energy storage in C&I applications as well as EV charging stations. Over the course of the last two months, Exro has onboarded new channel partners that provide access to customer networks in California, Colorado, Florida, the Caribbean, and regions within Canada. These channel partners have been trained on Cell Driver™ and are currently marketing and quoting the technology with solar energy, electric vehicle charging infrastructure and energy management projects. A summary of these new partners is provided below.  

Photovoltaics California (PVCA)  

  • Overview: California is a service and maintenance oriented electrical contractor supporting long term client energy requirements specializing in PV and storage. PVCA provides access to target rich California market.
  • Status: Entered a Channel Partnership Agreement. Providing training for sales force and commercial / technical support for proposals via Energy Toolbase. First orders anticipated by the end of Q3 2023.
  • Opportunity: PVCA is a highly active installer and O&M provider in the California region with a pipeline of Cell Driver™ units in various segments (primarily Solar + Storage). Multi-year revenue opportunity with visibility to projects 2023-2025.
  • Application: Exro is actively quoting projects in conjunction with PVCA installation costs.
  • www.pvca.com  

  • Overview: US Virgin Islands-based multinational solar and storage integrator with offices in USVI, Puerto Rico, Florida, and California. ProSolar is the largest solar integrator in the Caribbean region who brings a wealth of experience operating in the Caribbean.  
  • Status: Entered a Channel Partnership Agreement. The companies are actively reviewing various sites to identify a suitable host project for Cell Driver™ in the Caribbean.  
  • Opportunity: Multiyear revenue opportunity focused primarily on the Caribbean market with significant expansion opportunities into Florida and California. The relationship provides visibility into the 2023-25 demand cycle.
  • Application: Reliable grid tied backup power, off grid power, microgrid and solar self consumption.
  • https://prosolaramerica.com

Shaw Solar
  • Overview: Regional solar and electrical contractor servicing Western Colorado. In addition to new installations, Shaw has completed an extensive number of smaller commercial and light industrial projects which potentially stand to benefit from Cell Driver™.
  • Status: Entered a Channel Partnership Agreement. The companies are actively reviewing various sites to identify a suitable host project for Cell Driver™ in Western Colorado.  
  • Opportunity: Multiyear revenue opportunity providing guidance into the 2023-25 demand cycle.
  • Application: Demand charge management, off grid power, grid tied backup power and energy management innovation and leadership.
  • www.shawsolar.com

High Point Electric
  • Overview: British Columbia-based electrical and energy management contractor focused on large retail box stores including London Drugs, Loblaws and others.
  • Status: Entered Channel Partnership Agreement. High Point is actively reviewing their portfolio of retail box stores located in BC, Canada to identify locations which will benefit from Cell Driver™.
  • Opportunity: Multiyear revenue opportunity to enter large box retailers in Canada.
  • Application: Demand charge management and grid tied backup power.
  • https://hpoint.ca/

Cell Driver™ UL Certification Update

Having now completed two of the three certification phases, Exro’s Cell Driver™ is on track to complete UL certification in early Q3 2023, pushed back by approximately three weeks due to scheduling at UL’s certification laboratories. UL certification is required prior to connecting to the grid in North America. Certification will be followed by the start of series production for Cell Driver™ beginning with in-field pilots and initial customer deliveries in Q3 2023.  

For additional information on Exro’s Cell Driver™, please visit: Exro-Cell-Driver-Catalog

About RE:BUILD Manufacturing

Founded in 2020 with six employees, Re:Build Manufacturing now employs more than 850 people across eleven business units with facilities in Massachusetts, New Hampshire, New York, Michigan, Ohio, South Carolina, Colorado, and California. Re:Build Manufacturing is dedicated to building a better future for its employees, customers, partners, communities, and shareholders through a new model of industrialization. The company is focused on revitalizing America’s manufacturing base and creating meaningful, sustainable jobs in areas that have been deindustrialized.

About Exro Technologies

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 Drive™) 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.  

For more information visit our website at www.exro.com.

To view our Corporate Presentation visit us at www.exro.com/investors

Visit us on social media @exrotech.

Contact Information

Investor inquiries: Darrell Bishop, Chief Investment Officer dbishop@exro.com

Media inquiries: media@exro.com

Cautionary Statement Regarding Forward Looking Statements

This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward looking statements involve risks, uncertainties and other factors disclosed under the heading "Risk Factors" and elsewhere in the Company's filings with Canadian securities regulators, that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based upon the information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by these statements. Readers are therefore cautioned not to place undue reliance on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by the Company with the Canadian securities regulators, including the Company's annual information form for the financial year ended December 31, 2021, and financial statements and related MD&A for the financial year ended December 31, 2021, filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

Neither the Toronto Stock Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this press release.

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