Hexagon Purus and Panasonic Energy sign multi-year supply agreement for battery cells in North America

April 28, 2023

Hexagon Purus Systems USA LLC, a subsidiary of Hexagon Purus ASA (“Hexagon Purus”), a world leading manufacturer of zero emission mobility and infrastructure solutions, has signed a multi-year agreement for the supply of lithium-ion battery cells with Panasonic Energy Co., Ltd. (“Panasonic”), a global provider of innovative battery technology-based products and solutions. Panasonic will supply battery cells for Hexagon Purus’ proprietary battery systems, marking yet another important milestone for Hexagon Purus’ zero-emission heavy-duty offering in North America with battery system production initially slated for Kelowna, Canada.

The battery cells will be produced at Panasonic’s new facility in Kansas (U.S.) and will be compliant with the United States-Mexico-Canada (USMCA) trade agreement and are also expected to benefit from the Inflation Reduction Act of 2022 (IRA) incentives available for U.S. based producers of battery cells. The supply of battery cells will commence in early 2026. As part of the supply agreement, Hexagon Purus will prepay approximately USD 43 million (approximately NOK 450 million)through 2025, subject to the achievement of certain milestones. This prepayment will secure battery cell capacity for Hexagon Purus out of Panasonic’s production facility in Kansas.

Driving Energy Transformation

“Securing our battery supply chain has been an important objective for Hexagon Purus to deliver on our customer contracts such as the recently announced distribution agreement with Hino for the production of complete battery electric heavy-duty vehicles for the U.S. market. Panasonic has been a pioneer in making zero emission mobility available to the mass market, and this, coupled with their reliability and focus on continuous innovation, make them the ideal partner for Hexagon Purus”, says Morten Holum, CEO of Hexagon Purus.

“We are thrilled to announce this landmark agreement with Panasonic which further solidifie sour leading battery system and vehicle integration offering in North America”, says Todd Sloan, EVP of Hexagon Purus. “The agreement with Panasonic is a strong validation of our technology and will provide us a solid competitive platform to deliver quality solutions to our customers”.

“Zero-emission mobility will continue to grow in significance over the next decade and this agreement with Hexagon Purus marks an important step for Panasonic’s global strategy as a provider of innovative battery-technology”, says Kazuo Tadanobu, CEO of Panasonic Energy. “Partnering with Hexagon Purus, a technology-leading provider of safe and reliable battery systems for zero-emission heavy duty trucking, will help us to drive the growth of the lithium-ion battery industry and accelerate the transition to zero-emission mobility”.

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