Source: Streetwise Reports 04/06/2021
Romeo Power Inc. shares traded 65% higher after the firm reported that it entered into a long-term manufacturing and supply agreement to provide batteries for use in PACCAR’s Peterbilt 579 and 520 battery-electric vehicles.
Energy technology company Romeo Power Inc. (RMO:NYSE), which is focused on the design and large-scale manufacturing of lithium-ion battery modules and packs for commercial electric vehicles, today announced that it entered into “a long-term supply agreement with PACCAR (PCAR:NASDAQ), a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates, to provide battery packs, modules and battery management systems (BMS) for PACCAR’s battery electric vehicles (BEVs).”
The firms indicated that the agreement provides that Romeo Power will supply batteries to PACCAR for its Peterbilt 579 and 520 BEV truck models in the U.S. and Canada through the year 2025. The companies advised that production is expected to commence after 2021.
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The company’s CEO Lionel Selwood, Jr. stated, “Romeo Power is very pleased to extend its relationship with PACCAR through our new long-term supply agreement…PACCAR will continue to be a great partner for Romeo Power as we work to achieve our shared goals of reducing emissions with safe, energy efficient technology solutions. We look forward to continuing to collaborate with PACCAR to deliver leading-edge energy technology solutions that provide our customers with the extended range, safety and reliability they need to succeed.”
PACCAR’s Senior Vice President Darrin Siver commented, “PACCAR is committed to industry-leading quality and innovation…Romeo Power’s battery technology solutions will enable PACCAR to deliver state-of-the-art transportation solutions that enhance customers’ operations and environmental impact. We are pleased to enter into a long-term supply agreement with Romeo Power as they are paving the way for cost-effective electrification within the commercial vehicle sector.”
Romeo Power is based in Los Angeles, Calif., and described its business as “an energy technology leader delivering large-scale electrification solutions for complex commercial applications.” The company’s batteries are configured to specific customer requirements and are manufactured at its 113,000 square-foot manufacturing facility. The company stated that its in-house flexible design capabilities allow it to produce battery packs offering “the most energy dense modules on the market.”
Romeo Power began the day with a market cap of around $1.0 billion with approximately 126.8 million shares outstanding and a short interest of about 6.9 %. RMO shares opened almost 9% higher today at $8.73 (+$0.71, +8.85%) over yesterday’s $8.02 closing price. The stock has traded today between $8.41 and $13.33 per share and is currently trading at $13.31 (+$5.29, +65.96%).
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