Exro Technologies Inc. (TSX: EXRO), (OTCQB: EXROF), a leading clean-technology company, has signed a definitive commercialization agreement with Linamar Corporation (TSX: LNR), a global tier-1 automotive supplier. The agreement follows successful testing and validation by Linamar of the Parties’ co-developed integrated electric axle utilizing Exro’s Coil DriverTM traction inverter. It signals a commitment by the Parties to commercialize the product for multi-year series production.
A Next-Generation eAxle
The Parties established a goal two years ago to co-develop a next-generation eAxle utilizing Coil Driver™ technology. In a traditional powertrain, the motor and inverter are in separate housings on the vehicle chassis. An eAxle combines an electric vehicle’s motor, gears, and inverter into the drive axle of the vehicle. This provides fleets an opportunity to reduce maintenance requirements and energy consumption while also reducing costs and complexity.
The Tests and Samples
In Q4 2022, Exro supplied 800V Coil Driver™ inverter samples designed for integration into Linamar’s eAxle program. Following successful continued testing of the samples by Linamar through the first half of 2023, the Parties have progressed to a definitive agreement intended to commercialize the co-developed eAxle into series production.
Exro’s CEO Sue Ozdemir said, “The signing of the definitive agreement demonstrates steady progress with a leading tier-1 OEM supplier, further validates the potential of our technology, and signals to shareholders an opportunity for a material increase in production volume in the years ahead.”
The Multi-Year Series Production
The agreement is set for an initial five-year term, with the Parties committing to milestones and commercial volume targets. By Q4 2023, the Parties intend to build a demonstration vehicle containing the eAxle product to be utilized as a joint marketing asset for commercial vehicle customers. The Parties have committed to investing in their various areas of responsibility in accordance with the agreement. They intend to begin series production of the eAxle product to support customer deliveries beginning in late 2024.
Kevin Ledford, Global Vice President of Electrification (eLIN) at Linamar, said, “By integrating Exro’s technology into Linamar’s full eAxle system, we aim to offer a cost-effective 4-in-1 eAxle, which will reduce the integration complexity to our customers as well as offer superior performance to the medium-duty truck market beginning in late 2024.”
Exro’s and Linamar’s Exclusivity
Exro will be investing in finalizing its printed circuit board (PCB) manufacturing and beginning the capital expenditures for a final assembly line. Linamar has been granted exclusivity on Exro’s Coil DriverTM inverter for use in medium duty Class 3-6 electric beam axle applications. Exro maintains the ability to supply its technology for eAxle products in the Class 1-2 passenger vehicle market, as well as the Class 7-8 heavy-duty vehicle market.
Of note, the Linamar partnership is Exro’s only contemplated eAxle platform for Class 3-6 vehicles. Exro maintains non-exclusivity across all its direct drive Coil DriverTM partnership applications. The direct drive partnerships include customers such as SEA Electric, Vicinity, and others where the powertrain utilizes a motor and inverter direct drive system versus an eAxle. The agreement does not place exclusivity restrictions on Linamar, which will continue to work with other vendors and suppliers to meet its customers’ application-specific requirements.
Conclusion
This commercialization agreement between Exro and Linamar marks a significant milestone in the development of next-generation electric vehicle technology. The integration of Exro’s Coil Driver™ technology into Linamar’s eAxle system is expected to offer a cost-effective 4-in-1 solution that reduces complexity and energy consumption while improving performance. The agreement is set to run for an initial five-year term with milestones and commercial volume targets to be met. The Parties plan to begin series production of the eAxle product in late 2024, with a demonstration vehicle set to be built by Q4 2023. Exro will invest in finalizing its PCB manufacturing and beginning the capital expenditures for a final assembly line. Linamar has been granted exclusivity on Exro’s Coil Driver™ inverter for use in medium duty Class 3-6 electric beam axle applications, while Exro maintains non-exclusivity across all its direct drive Coil Driver™ partnership applications.
The commercialization of this new technology has the potential to revolutionize the medium-duty truck market, offering significant benefits to fleets and customers alike. With this agreement, Exro and Linamar have demonstrated their commitment to pushing the boundaries of electric vehicle technology, delivering products that are more efficient, cost-effective, and easier to maintain. As electric vehicles continue to gain in popularity, it is clear that partnerships like this will play an increasingly important role in driving innovation and progress in the industry. As such, we can expect to see more groundbreaking developments and collaborations from these and other companies in the months and years ahead.
Julia Brown is a Master’s in Business Administration by education. After completing her post-graduation, Julia jumped the journalism bandwagon as a freelance journalist. Soon after that she landed a job of reporter and has been climbing the news industry ladder ever since to reach the post of editor. Julia holds keen interest in technology and writes tirelessly on how technology innovation is affecting life and whole world. She has extensive knowledge in technology news writing.
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