Romeo Power (RMO)

[WeTheMarket]

Extract from a Lion Electric article dated Jan 27, 2021.

Recently, it became clear that Lion Electric had scored a massive order from Amazon. Amazon plans to procure up to 2,500 all-electric Lion 6 and Lion 8 trucks from Lion Electric by 2025.

Lion has a lot to do in the upcoming period of expansion. Just last month Lion Electric ordered $234 million worth of batteries from Romeo Power Lion Electric’s electric trucks and electric buses. Well prepared, just a month before that, Lion Electric entered a service partnership with charging solution giant ABB.

Lion Electric was originally known for their electric school buses, their journey towards diversifying began with a Class 8 electric truck last year. Not that the company lost touch with their roots, however, as Lion Electric received a contract for electric school buses from Transdev Canada shortly afterwards. Their expansion into electric trucks was also quickly rewarded, as their largest contract yet came from the Canadian National Railway for a total of 50 battery-electric trucks.

In November last year, US battery manufacturer Romeo Power received another major order from the Canadian e-commercial vehicle manufacturer. Under the terms of the contract signed by both parties, Romeo will supply battery modules and packs for Lion Electric’s electric trucks and electric buses.

The agreement with Romeo Power covers Lion Electric’s entire fleet of all-electric buses and trucks in classes 6 to 8 (from 8.84 tons) and is expected to provide Romeo Power with estimated sales of $234 million over a five-year period starting in 2021. According to Romeo boss Lionel Selwood Jr., this is his company’s eighth production contract – and by far the largest: The deal doubles the revenues previously agreed to in the contract.

Romeo Power has a production facility in Los Angeles with a capacity of 7 GWh and announced its IPO in October. Last year, US supplier BorgWarner also invested 50 million dollars in Romeo Power against the backdrop of setting up a joint venture.

Link to article: https://www.electrive.com/2021/01/27/lion-electric-charges-north-america-with-offer-from-flo-network-addenergie/