Electric Last Mile Solutions, the EV startup that has already started assembling and delivering its Urban Delivery electric commercial van in the US, has announced a battery supply deal with China’s CATL running through 2025.

ELMS calls the deal “a major progress in its vehicle battery strategy with an eye towards potential U.S. localization of its electric vehicle batteries.” According to the agreement with Contemporary Amperex Technology Co Limited (CATL), ELMS will secure its battery supply and production capacity needed for its all-electric Class 1 Urban Delivery commercial vehicle. 

“We reached an important milestone to secure battery capacity in an extremely challenging supply environment. This step allows ELMS to guarantee continued utilization of trusted, reliable vehicle components in our products.”

Rob Song, Deputy Chief Financial Officer and Treasurer, ELMS

As part of the deal running through 2025, CATL will provide a 42-kWh lithium-ion battery in the lithium-iron phosphate (LFP) chemistry system, which ELMS says it has demonstrated high safety and reliability, as well as long cycle life.

Gallery: Electric Last Mile Solutions Urban Delivery Class 1 Electric Commercial Vehicle

The battery pack’s design leverages CATL’s cell-to-pack (CTP) technology, thus improving system energy density, simplifying manufacturing, and resulting in cost savings. In addition to the supply deal, ELMS and CATL will collaborate on future battery localization in the United States. No further details have been offered regarding the latter. 

ELMS started production of the Urban Delivery electric van on September 20 at its plant in Mishawaka, Indiana, a former AM General site that used to produce Hummer H2 SUVs for General Motors.

The Urban Delivery has a range of up to 120 miles (193 km) and offers 171 cubic feet (4.84 cubic meters) of cargo space. The electric van starts at about $27,000 after a $7,500 federal tax credit and ELMS claims it offers a 35% lower total cost of ownership (including fuel and maintenance) compared to similarly sized gas-powered vans.

ELMS expects to begin production of a second vehicle, the Class 3 Urban Utility EV, in the second half of 2022 (check it out in the video below). 

Got a tip for us? Email: tips@insideevs.com