Hexagon Purus Systems USA LLC, a subsidiary of Hexagon Purus ASA (Hexagon Purus), a world leading manufacturer of zero emission mobility and infrastructure solutions, has signed a multi-year agreement for the supply of lithium-ion battery cells with Panasonic Energy Co., Ltd. (Panasonic), a global provider of innovative battery technology-based products and solutions. Panasonic will supply battery cells for Hexagon Purus’ proprietary battery systems, marking yet another important milestone for Hexagon Purus’ zero-emission heavy-duty offering in North America with battery system production initially slated for Kelowna, Canada.
The battery cells will be produced at Panasonic’s new facility in Kansas (U.S.) and will be compliant with the United States-Mexico-Canada (USMCA) trade agreement and are also expected to benefit from the Inflation Reduction Act of 2022 (IRA) incentives available for U.S. based producers of battery cells.
The supply of battery cells will commence in early 2026. As part of the supply agreement, Hexagon Purus will prepay approximately USD 43 million (approximately NOK 450 million) through 2025, subject to the achievement of certain milestones. This prepayment will secure battery cell capacity for Hexagon Purus out of Panasonic’s production facility in Kansas.
Commenting on the tie-up, Morten Holum, CEO of Hexagon Purus, said, “Securing our battery supply chain has been an important objective for Hexagon Purus to deliver on our customer contracts such as the recently announced distribution agreement with Hino for the production of complete battery electric heavy-duty vehicles for the U.S. market.”
