Dallas-based investor Principal Solar Inc. has executed a development agreement with India-based heavy-duty electric vehicle (EV) maker IPLTech Electric Pvt. Ltd.
Upon completion of the development of a pure-electric truck prototype, Principal and IPLTech will enter into a licensing agreement through which Principal will receive a license to deploy IPLT’s technologies in U.S. truck platforms. The agreement also provides an opportunity for Principal Solar to co-invest in IPLTech alongside private equity funds. In exchange, Principal Solar will receive a combination of exclusive and non-exclusive rights to commercialize IPLT’s proprietary technologies for North American markets.
“This transaction strategically expands Principal’s investments in the electric vehicle sector,” says K. Bryce “Rick” Toussaint, chairman and CEO of Principal Solar. “We believe that this relationship with IPLTech has the potential to bring significant value to our stakeholders by increasing the company’s EV intellectual property investments and providing access to international markets. IPLTech’s proven technologies could also broaden principal’s potential commercial EV solutions for future customers.”
Sid Das, co-founder and CEO of IPLTech Electric, adds, “For months, we have been successfully operating a commercial fleet of trucks in the Indian market. We strongly believe in our partnership with Principal and our combined ability to deliver pure-electric, zero-tailpipe-emissions Class 8 trucks to customers in North American markets.”
Per the terms of the agreement, in exchange for the license, Principal will contract with IPLT to develop a working prototype in India for North American markets. Principal will assist IPLT in acquiring the approvals necessary for the prototype to operate on U.S. roads.
The terms of the transaction are expected to be finalized and closed this month.