Balqon, whose portfolio of manufacturing expertise has placed the company among the premier global providers of medium to heavy-duty electric vehicles, reported a milestone JDA (joint development agreement) today to supply electric drive systems to major Chinese vehicle manufacturing firm Fulin Group’s wholly-owned bus manufacturing-operating subsidiary, Sichuan Automobile Industry Co., Ltd (SAIG).
SAIG is well known across China for their leading brands of bus, minivan, and light off-road vehicle types, with key positioning as the sole possessor of both commercial and passenger vehicle manufacturing facilities in booming Sichuan province. The rapidly increasing rate of urbanization in China has fueled SAIG’s success, and this deal is big news for BLQN, who has scored another noteworthy win with this JDA, especially considering how SAIG is listed in the official 12th Five-Year Government Plan for Sichuan province.
The JDA includes SAIG’s purchasing of the company’s proven electric drive systems (for incorporation into 22-foot bus chassis), which were selected in large part due to superior design compared to competitors, featuring the proprietary ZEVQON™ Flux Vector AC controller and HIQAP™ series high-energy lithium batteries. The effort will see both companies kicking in the necessary engineering work to get certification, integration, and testing completed for these vehicles to be used and considered road-worthy on both Chinese and North American roads.
SAIG has picked up several important grants from the Chinese government recently for low-emission vehicle production and since SAIG is the owner and operator of a fleet of over 5k inner-city diesel busses (mostly in Western China), this JDA gives BLQN increased access to a massive, long-term growth vector. The market is ripe for BLQN technology and the company’s reputation for being a successful pioneer in the commercial EV space will likely continue to open such doors for their products throughout the larger Asian market.
President of SAIG, Cao Guodong, commented on the recent explosion of electric taxis in the province and noted how SAIG had already taken up a leadership position amid this push, clearly asserting how the deal with BLQN will help SAIG to expand beyond the success they have had with electric passenger vehicles in the region, moving further into the heavy duty truck and electric bus market. The technical expertise in this field and considerable experience Balqon brings to the table via this JDA is seen by SAIG management as a real ace in the hole.
President and CEO of BLQN, Balwinder Samra, asseverated wholeheartedly and went further by bringing up the obvious momentum generated by the Chinese government’s desire to switch from diesel to electric for transportation infrastructure. A renewed emphasis on air pollution in China due to the urbanization metrics is generating huge shareholder return potential for BLQN and given the lay of the land, it is easy to see that the company will likely be doing more of and similar deals in the near future as China continues to move to upgrade economically-vital transport capability.
For more information on Balqon, please visit www.Balqon.com
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