Colorado-based UQM Technologies (NYSE MKT: UQM) has signed a 10-year supply agreement with ITL Efficiency Corporation in China to provide electric propulsion systems.
UQM will provide its PowerPhase Pro 135 system for 6-8 meter shuttle buses and, beginning in early 2017, its PowerPhase HD 250 system for transit buses and light- to medium-duty delivery trucks.
Revenues from the deal are expected to be as much as $400 million. UQM has already received the first purchase order, for 3,000 units, which are slated for shipment in 2017. UQM will manufacture its systems in Colorado through 2017, and plans to begin production in China in 2018.
ITL has a supplier relationship with Wuhan Public Transport Group, a state-owned operator of public buses that has a fleet of almost 7,000 buses, many of which it plans to convert to new energy vehicles. ITL’s Chinese parent company, Eastlake, also owns three vehicle manufacturers (Yixing, Yangtse and Speka), which have combined capacity to produce over 15,000 vehicles a year.
“The signing of this supply agreement with ITL is a major milestone for UQM, and is the result of many years of focused attention to the China market,” said UQM COO Joe Mitchell. “This achievement solidifies our long-term strategy to become a major global provider of electric propulsion systems, particularly in China, the largest market in the world for electric vehicles.”
Frank Lee, President of ITL, said, “We have looked extensively for the most reliable and efficient electric drive technology, and after careful consideration, we have chosen UQM Technologies as the correct partner for long-term success in the China market.”