Hexagon Purus has signed a long-term binding letter of intent (LOI) with Hino Motors Manufacturing U.S. Inc. Hexagon Purus will 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 $1 billion.
Already a development partner in Hino’s “Project Z” battery electric vehicle (BEV) program, Hexagon Purus will continue the development phase of the project in 2022, with customer demonstrations in 2023 and serial production scheduled for 2024. Serial production will cover multiple platforms, including Hino’s Class 6, 7 and 8 commercial trucks.
This agreement comes in addition to the already announced 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 $ 1.8 billion and $2.2 billion.
“We are committed to a very aggressive road map for achieving CO2 emissions reductions,” says Glenn Ellis, SVP of customer experience. “Project Z’s focus is on providing sustainable next generation commercial mobility that delivers a 90 percent reduction in CO2 emissions in commercial trucks. This includes shifting to electrification with battery electric vehicles (BEVs) and fuel-cell electric vehicles (FCEVs). 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 percent of all road freight emissions,” states Todd Sloan, EVP of systems for Hexagon Purus. “The mass adoption of zero emission battery (BEV) and fuel cell (FCEV) electric trucks among fleets will be key to decarbonizing the sector. 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.