Hexagon Purus, a world leading manufacturer of zero emission mobility solutions, 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 USD 1 billion (approx. NOK 9 billion).

Already a development partner in Hino’s “Project Z” Battery Electric Vehicle (BEV) program (Hexagon Purus Nov. 6, 2020), 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 (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).

Driving Energy Transformation

“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.

Contacts

Mathias Meidell, Investor Relations Director, Hexagon Purus
Telephone: +47 909 82 242 | mathias.meidell@hexagonpurus.com

Karen Romer, SVP Communications, Hexagon Composites
Telephone: +47 950 74 950 | karen.romer@hexagongroup.com

This information is considered to be inside information pursuant to the EU Market Abuse Regulation. This stock exchange announcement was published by David Bandele, CFO at Hexagon Composites ASA, on 11 February, 2022 at 07:30 CET.

About Hino

Hino Trucks manufactures, sells, and services a lineup of Class 4-8 commercial trucks in the United States. Hino Trucks is the premier heavy and medium duty nameplate in the United States with a product lineup that offers fully connected vehicles with low total cost of ownership, unmatched reliability and maneuverability and the most comprehensive bundle of standard features in the market. Headquartered in Novi, Michigan, Hino has a network of over 240 dealers nationwide committed to achieving excellence in the ultimate ownership experience.

Learn more about Hino Trucks at http://www.hino.com or follow us on Facebook, LinkedIn, Twitter and YouTube.

About Hexagon Purus

Hexagon Purus, a Hexagon Composites company, is a world leading provider of hydrogen Type 4 high-pressure cylinders, battery packs and vehicle systems integration for fuel cell electric and battery electric vehicles. Hexagon Purus enables zero emission solutions for light, medium and heavy-duty vehicles, buses, ground storage, distribution, maritime, rail and aerospace.

Learn more at www.hexagonpurus.com, and follow @HexagonPurus on Twitter and LinkedIn.