XALT Energy battery cells

XALT Energy battery cells

XALT Energy announced a major exclusive contract to supply lithium-ion batteries made in the US for electric buses manufactured in China by Hybrid Kinetic Group "HK Group."  The buses will be leased to municipal transit operators throughout China.

According to the press release, the multi-year contract is valued at more than $1.0 billion and will bring 300 new high-tech and manufacturing jobs to Midland, Michigan this year - which seems like change from historical norms.

The first 80 positions are expected to be filled in April, which alone is significant compared to the 130 employees at XALT Energy now.

XALT Energy said that it will supply LTO battery type, 68-100 kWh per vehicle, which can be recharged in less than 10 minutes. Production is scheduled for 3rd quarter of 2015.

"XALT has enjoyed great support from the U.S. Department of Energy, the State of Michigan, including the Legislature, the Michigan Economic Development Corporation, the Michigan Department of Treasury, and the Michigan Department of Environmental Quality, as well as the City of Midland. XALT will continue to work with these agencies on various programs as it moves forward to bring high-quality jobs to Michigan.

To date, XALT has invested more than $600 million in its world-class, fully-automated flexible Lithium chemistry -based manufacturing facility in Midland. The company currently employs 130 people. Utilizing its state-of-the-art production operations, proven technology and talented human capital, XALT delivers practical, cost effective and well-engineered energy storage solutions to its global customers in commercial transportation, as well as marine, and stationary power application industries.

XALT unites its large-format cell technology with the market applications, manufacturing expertise and industry knowledge necessary to be a revolutionary advanced battery manufacturer. XALT continues to expand its knowledge and expertise to explore and evaluate next generation Lithium-ion battery technology and engineered solutions for current and future applications."

Dr. Yung Yeung, Chairman of HK Group, remarked:

"XALT's high quality and cost competitive battery products fit very well with our group's strategy of launching all-electric public transit buses in large scale with our unique business model. This supply relationship is a fine example of Sino-American energy cooperation."

Dennis Townsend, Chairman of XALT commented:

"It has always been our objective to enable electrification of global transportation markets since we ventured into the battery industry several years ago. Today's signing of the exclusive supply agreement with the HK Group witnesses a significant step forward towards that goal."

Subhash Dhar, CEO of XALT said:

"The XALT team is pleased to partner with HK Group on this project. Today's announcement demonstrates a clear commitment to modernizing global transportation needs through environmentally clean technologies. One of our core values is the care for the environment. These new, technologically advanced electric buses will reduce greenhouse gas emissions significantly, compared to current diesel powered buses, while ensuring the highest level of efficiency, performance and reliability."