The two companies previously announced a long-term supply agreement for cylindrical cells manufactured at a LG Energy Solution U.S. facility
The Manufacturing Complex is expected to include dedicated battery cell capacity for Proterra-manufactured, USMCA-compliant commercial EV battery systems
BURLINGAME, Calif., March 24, 2023 (GLOBE NEWSWIRE) — Proterra Inc (NASDAQ: PTRA), a leading innovator in commercial vehicle electrification technology, today congratulated LG Energy Solution on its announcement that it will construct a battery manufacturing complex in Queen Creek, Arizona.
Proterra and LG Energy Solution previously announced a long-term supply agreement to provide Proterra with cylindrical cells produced at an LG Energy Solution battery cell manufacturing plant in the United States. Today’s announcement by LG Energy Solution regarding the future Queen Creek, Arizona complex represents a major step forward to secure Proterra access to multiple gigawatt hours of dedicated U.S.-manufactured battery cell capacity on an annual basis.
“As an American technology leader, Proterra is proud to be part of LG Energy Solution’s decision to bring battery cell manufacturing to the United States,” said Gareth Joyce, Proterra CEO. “Today’s announcement helps to further the United States’ commitment to develop domestic production of EV batteries as well as Proterra’s mission to power a better, more sustainable world.”
LG Energy Solution stated that it aims to start mass production of cylindrical cells at the Arizona facility in 2025, which are expected to be eligible for tax credits under the Inflation Reduction Act. With the introduction of cylindrical cells manufactured in the United States, Proterra plans to build battery systems that meet content requirements under the United States-Mexico-Canada Agreement (USMCA).
Since 2016, Proterra and LG Energy Solution engineering teams have been collaborating to maximize cell performance to meet the stringent requirements of commercial vehicle markets. The cylindrical cells to be manufactured at the new Queen Creek, Arizona battery manufacturing complex will feature a new, high nickel NCMA chemistry ideal for commercial vehicles and industrial applications.
Designed and manufactured in the United States, Proterra’s battery systems have been proven through more than 35 million service miles driven in commercial vehicle applications and selected by leading commercial vehicle manufacturers to electrify delivery vehicles, construction equipment, school buses, coach buses, and more.
Proterra is a leader in the design and manufacture of zero-emission electric transit vehicles and EV technology solutions for commercial applications. With industry-leading durability and energy efficiency based on rigorous U.S. independent testing, Proterra products are proudly designed, engineered, and manufactured in America, with offices in Silicon Valley, South Carolina, and Los Angeles. For more information, please visit www.proterra.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding Proterra’s relationship with LG Energy Solution; Proterra’s expectation that the Arizona Manufacturing Complex will supply Proterra with cylindrical cells under a previously announced long-term supply agreement; Proterra’s ability to manufacture USMCA-compliant commercial EV battery systems; Proterra’s access multiple gigawatt hours of dedicated U.S.-manufactured battery cell capacity on an annual basis; and the type of cells to be manufactured by LG Energy Solution. Forward-looking statements are predictions and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including risks and uncertainties set forth in Proterra’s filings with the SEC. The forward-looking statements included in this press release speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Proterra assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Proterra does not give any assurance that it will achieve its expectations.