Hexagon Purus, a Norwegian zero-emission vehicle technology company, has recently signed a multi-year supply contract with Panasonic in North America. The contract entails Panasonic delivering battery cells for use in electric trucks. This move will help the company to secure key production capacity from Panasonic’s new Kansas plant, with deliveries set to start in 2026.
As part of the agreement, Hexagon Purus has committed to making an upfront payment of approximately $43 million (€39.3 million) by 2025, provided Panasonic reaches certain milestones. This payment will help Hexagon Purus secure production capacity from the battery factory that is reported to have begun construction in November 2022.
See also: Hexagon Purus to produce battery-electric heavy-duty trucks for US market in exclusive Hino deal
The cells were initially set to be produced in Kelowna, Canada, but Hexagon Purus emphasises that the cells from Kansas will meet the subsidy requirements under the US Inflation Reduction Act.
“We are thrilled to announce this landmark agreement with Panasonic, which further solidifies our leading battery system and vehicle integration offering in North America,” said Todd Sloan, executive vice president of Hexagon Purus. He also called the deal “a strong validation of our technology and will provide us a solid competitive platform to deliver quality solutions to our customers”.
This is a significant step for Hexagon Purus, which only recently signed an agreement with Hino Motors Sales USA to exclusively distribute battery-electric heavy-duty trucks manufactured by Hexagon Purus for the US market through dealers in the Hino network. The vehicles are scheduled to go into series production in 2024.
Hexagon Purus CEO Morten Holum emphasised the importance of securing the company’s battery supply chain, stating that it has been a key objective for the company to deliver on its customer contracts, such as the recently announced distribution agreement with Hino.
See also: Hexagon Purus Opens New Manufacturing Facility for Hydrogen Storage in Westminster
America is a relatively new market for the Norwegian company, but the company has already expanded its operations significantly. Hexagon Purus specialises in zero-emission vehicle technology, including hydrogen, for which it recently opened a factory in Maryland.
Hexagon Purus feels vindicated in its expansion, as recent political advances, such as the initiatives to decarbonise heavy goods vehicles in California, suggest a shift towards stricter environmental regulations. California reportedly wants to make manufacturers gradually put more electric trucks on the road from 2024 and phase out diesel. By 2045, all vehicles sold must be zero emission according to ACT regulation. Six other states, namely New York, New Jersey, Oregon, Massachusetts, Washington, and Vermont, which account for about 20 per cent of heavy-duty vehicle sales nationwide, have already committed to following the stricter standards. Colorado and Maine are in the process of adopting the new rules.
