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Exro (TSX:EXRO) announces Cell Driver manufacturing partner, new channel partner deals

Industrial, Market News, Technology, Transport
TSX:EXRO
08 May 2023 12:30 (EDT)

Source: Exro Technologies.

Exro (EXRO) has appointed Re:Build as exclusive manufacturing partner for its Cell Driver energy storage system.

Exro’s Cell Driver is an integrated energy storage system that uses the company’s Battery Control System to actively manage battery cells based on health and state of charge, effectively granting them a second life.

Founded in 2020, Re:Build Manufacturing employs more than 850 people across eight U.S. states dedicated to product innovation, advanced components, systems production, and industrial automation in aerospace and defense, cleantech, health, industrial equipment, lifestyle, and mobility.

Exro’s Cell Driver. Source: Exro Technologies.

Exro will provide Re:Build with battery control system power electronics over the partnership’s initial five-year term.

Re:Build will be responsible for all capital expenditure, supply chain, and inventory working capital requirements associated with manufacturing the Cell Driver. The arrangement improves Exro’s investment prospects through quicker scaling and 50-per-cent savings on manufacturing costs enabled by Re:Build’s cutting-edge tech and operational expertise.

The U.S.-made Cell Driver will also qualify for Buy America incentives available to customers.

New channel partnership agreements

Exro’s go-to-market strategy for the Cell Driver involves accessing commercial and industrial markets through renewable energy, energy management, and electric vehicle charging infrastructure integrators and distributors across North America.

Source: Exro Technologies.

Over the last two months, the company has onboarded new partners in California, Colorado, Florida, Canada and the Caribbean, each of which are marketing and quoting the technology for projects with multi-year revenue potential. The partners include:

Cell Driver UL certification update

The Cell Driver is on track to complete UL certification in early Q3 2023. UL certification is required prior to connecting to the North American grid.

Upon certification, Exro will begin series production for the Cell Driver, beginning with in-field pilots and initial customer deliveries in Q3 2023.

“We continue to make steady progress advancing our go-to-market strategy for our Cell Driver technology in order to satisfy the growing demand for energy storage,” said Exro’s CEO, Sue Ozdemir. “Our partnership with Re:Build provides us the ability to leverage a world-class manufacturing partner to immediately scale operations and eliminate from our balance sheet the significant capex and working capital that would otherwise be required.”

“In addition, our new channel partners amplify our reach to commercial and industrial customers who want to save money on increasing utility costs, secure a reliable backup source of energy, and contribute to the sustainability of the communities in which they operate. As we prepare to achieve UL certification in the next few months and scale our energy storage business, this opportunity to unlock value for our shareholders is significant,” she added.

Exro Technologies is a clean technology company developing new generation power-control electronics that expand the capabilities of electric motors and batteries.

Exro Technologies (EXRO) is up by almost 80 per cent over the past year trading at $2.47 per share.

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