Hexagon to supply Hino Motors with $1.0bn worth of battery packs

Hexagon Purus to supply Hino Motors with $1.0bn worth of battery packs

OSLO, NORWAY: Hexagon Purus has signed a long-term binding letter of intent (LOI) with Hino Motors Manufacturing U.S. Inc. to provide battery packs for multiple Hino truck platforms with serial production planned from 2024. The total sales value over the life of the agreement is estimated at USD 1 billion (approx. NOK 9 billion).

This agreement comes in addition to the already announced (31 January 2022) nomination of Hexagon Purus by a major commercial truck OEM for the supply of battery packs.

For Hexagon Purus, these two agreements represent an estimated value of between approximately USD 1.8 billion and 2.2 billion (approximately NOK 16 billion and NOK 19 billion).

“We are committed to a very aggressive road map for achieving CO2 emissions reductions. Project Z’s focus is on providing sustainable next generation commercial mobility that delivers a 90% reduction in CO2 emissions in commercial trucks. This includes shifting to electrification with battery electric vehicles (BEVs) and fuel-cell electric vehicles (FCEVs),” said Glenn Ellis – Senior VP of Customer Experience.

“In Project Z, Hexagon Purus is a like-minded partner that has worked side-by-side with Team Hino to deliver a sustainable, low-cost product line-up that meets the needs of our customers as our industry moves forward to zero emission vehicles.”

“Commercial trucks use the most fuel and produce the most emissions in the transport sector, accounting for more than 40% of all road freight emissions. The mass adoption of zero emission battery (BEV) and fuel cell (FCEV) electric trucks among fleets will be key to decarbonizing the sector,” says Todd Sloan, EVP Systems, Hexagon Purus.

“Hino’s move to serial production will accelerate the green shift in commercial transportation, and Hexagon Purus is proud to be a part of this transition.”

The agreement includes aftermarket support and service provided by Hexagon Purus. Initial production will be out of Hexagon Purus’ new facility in Kelowna, Canada, which is currently under construction and scheduled to be completed in Q3 2022.

www.hexagongroup.com

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