The American Commercial EV startup signs a battery supply deal with China’s Contemporary Amperex Technology (CATL). Furthermore, the financial details were not revealed except that it runs till 2025. CATL already provides batteries for the Class 1 small delivery vehicles. As ELMS plans to introduce bigger vehicles, the deal is being set with CATL.
ELMS began its delievries last month in Mishawaka, Indiana. They are further working on having a setup at CATL’s US plant which can make batteries. These batteries will then be shipped to Indiana where the ELMS plant is located. It was stated by ELMS spokesman that the Indiana assembly plant will receive batteries from CATL’s US plant once it is set up.
Furthermore, the companies are exploring a setup for the US plant of CATL. ELMS depute chief financial officer Rob Song said, “We reached an important milestone to secure battery capacity in an extremely challenging supply environment.” Battery makers all around the world are pushing towards increasing production. As the demand in the automobile industry is increasing rapidly, production is being pushed. Also, tougher emission rules and regulations are making it tougher for the industry to keep up with the pace. CATL already supplies its batteries to many prominent EV makers around the world including Tesla, Volkswagen, and General Motors.
More about ELMS
The company went public in June this year. The Michigan-based EV makers started their production in the plant which earlier produced gas-guzzling Hummer SUVs in the mid-2000s. During the time when the company was about to go public, CEO James Taylor talked about their business plan. Said, “We’re going to be in the wind that will blow one way, it’ll blow another way for the next few months until we produce evidence and tangible proof of our business plan. Until then, we’ll probably just bounce around whatever is going on in the space.”
As the company is especially focusing on commercial vehicles, its business model is said to be unique. They need lesser capital and can gain more depending on the demand. Taylor said during an interview, “Our overall risk is much, much lower than the other entrants in this space from an EV standpoint.”
Earlier the company was said to be valued at $1.4 billion in December. Now, the company forms deals with CATL, and as they have already started deliveries. The company’s worth could be gradually increasing. As ELMS is continuing to mark key milestones, their growth is evident.