Lion Electric enters into multi-year cell supply agreement for EV battery manufacturing with a top-tier supplier.
The Lion Electric Company (NYSE: LEV) (TSX: LEV) (“Lion” or the “Company”), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, announced that it has entered into a four-year supply agreement with a top-tier supplier (the “Supplier”) for the supply of lithium-ion battery cells (the “Cell Supply Agreement”) to be used for the manufacturing of batteries for electric vehicles.
Subject to the terms and conditions of the Cell Supply Agreement, the Supplier has committed to supply, and Lion has committed to purchase, on a non-exclusive basis, lithium-ion battery cells at escalading volumes over calendar years 2023 and 2024, at agreed upon prices, subject to adjustments, including to account for increases in the prices of raw materials and changes in specifications.
Volumes and unit prices for calendar years 2025 and 2026 remain to be agreed upon by the parties.
The Cell Supply Agreement currently provides that 39 million lithium battery cells are to be purchased by Lion in total over calendar years 2023 and 2024, subject to, among other things, the Supplier completing its internal cell qualification processes to validate satisfaction of Lion’s specification requirements.
The Cell Supply Agreement provides for termination rights and penalties in favour of each party in the event that a specified percentage of the volume commitments set forth in the contract are not met for each applicable period defined thereunder.
ABOUT LION ELECTRIC
Lion Electric is an innovative manufacturer of zero-emission vehicles. The company creates, designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit and mass transit segments.
Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles’ components, including chassis, battery packs, truck cabins and bus bodies.
Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs.
Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws and within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”).
Any statements contained in this press release that are not statements of historical fact, including statements about Lion’s and the Supplier’s commitments under the Cell Supply Agreement and the expected volumes of lithium-ion battery cells to be supplied thereunder, are forward-looking statements and should be evaluated as such.
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LION ELECTRIC ENTERS INTO MULTI-YEAR CELL SUPPLY AGREEMENT FOR EV BATTERY MANUFACTURING WITH A TOP-TIER SUPPLIER, MONTREAL, November 22, 2022
