Lightning eMotors (NYSE: ZEV), a provider of specialty commercial electric vehicles for fleets has seen its share price surge on Tuesday after it, along with and Forest River, Inc, announced they have entered into a strategic partnership agreement to deploy up to 7,500 zero-emission shuttle buses.
Forest River is a Berkshire Hathaway company (NYSE: BRK.A). The agreement has a potential estimated value of up to $850 million and will see Lightning eMotors build fully electric powertrains and provide charging products and services for Forest River over the next four and a half years.
Lightning eMotors will manufacture the zero-emission-vehicle powertrain systems at their 231,000 square foot facility in Loveland, Colorado, and ship the powertrains to Forest River’s factory in Goshen, Indiana, for assembly of Class 4 and 5 all-electric passenger buses.
In a statement, Lightning eMotors said the buses will feature “battery configurations from 80kWh to more than 160kWh using industry-leading battery thermal management systems.”
The buses can drive for ranges on a single charge of between 80 and 160 miles and can recharge using Lightning eMotors’ DC fast charge infrastructure.
Kash Sethi, CEO of Lightning eMotors, said: “Transit agencies and other shuttle operators, including airports, parking lots, hotels, and corporate and university campuses, have had an increasing selection of options for large full-size electric buses,”
“However, supply for medium-duty electric buses has been limited to smaller EV companies working with regional dealerships to retrofit buses. This model has proven to be neither cost-efficient nor scalable. Now, Forest River is demonstrating it will continue being the leader in the commercial bus market by offering sustainable zero-emission buses as part of their core product portfolio.”
Lightning eMotors' share price has surged over 73% to $11.10 following the announcement.
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