Hexagon Purus signs lease agreement for new vehicle integration facility in the US

(Oslo, 20 September 2023) Hexagon Purus, a world leading manufacturer of zero emission mobility and hydrogen infrastructure solutions, will open a new vehicle integration facility in Dallas, Texas employing up to 250 skilled workers. The new facility significantly increases Hexagon Purus’ vehicle integration capacity and will enable delivery on the recently won vehicle integration contracts with Hino Motors and the undisclosed major North American OEM.

The new facility is more than 200,000 square feet and with its centralized location in the US, supports efficient production and distribution to customers of Hexagon Purus’ complete battery electric heavy-duty trucks for the US market.

Hexagon Purus has signed a 10-year lease for the facility in Dallas. The building is already constructed, allowing for a quicker move-in-date and shorter time to start of production. Serial production of the trucks out of the new facility is currently expected to commence during the second half of 2024 and initial battery system volumes will be produced and delivered by Hexagon Purus’ facility in Kelowna, Canada. The new facility will also provide Hexagon Purus with the option to add manufacturing capacity for battery modules and packs, which would also qualify for Inflation Reduction Act (IRA) subsidies.

Driving Energy Transformation

“We are very happy to announce our plans for a new vehicle integration facility in Dallas. The facility marks yet another important milestone for Hexagon Purus in building a strong position in the North American zero emission heavy-duty trucking space. We continue to experience solid demand for our vehicle integration offering and the new facility will enable us to deliver on recently won customer contracts”, says Morten Holum, CEO of Hexagon Purus. “The current footprint of the facility also allows for further expansion to support continued customer growth in the US”.

“The new facility is strategically located to serve both the ‘CARB states’ truck demand and obvious applications for low mileage battery electric vehicles like utility trucks and urban truck deliveries. These states and applications will be the main offtake areas for zero-emission trucking in the near- to medium term”, says Todd Sloan, EVP of Hexagon Purus. “The new facility is also located with proximity to key suppliers making it an ideal location for our vehicle integration operations”.

For more information:

Mathias Meidell, Investor Relations Director, Hexagon Purus
Telephone: +47 909 82 242 | mathias.meidell@hexagonpurus.com mathias.meidell@hexagonpurus.com

Eli Turander, Global Communications Director, Hexagon Purus
Telephone: +47 953 35 795 | eli.turander@hexagonpurus.com

About the market

To reach the 1.5°C ambition set by the Paris agreement back in 2015 the transportation sector is required to reduce emissions by 75% by 2050. In the U.S., both Environmental Protection Act (EPA) and California Air Resources Board (CARB) have introduced proposals and regulations that addresses the need for further reductions in emissions in the transportation sector. In California, CARB has introduced a regulation for truck manufacturers (Advanced Clean Truck standard), and more recently, proposed a new regulation for fleet owners (Advanced Clean Fleet standard). Both regulations aim at reducing emissions and accelerate the adoption of zero-emissions vehicles (ZEVs) in the transportation sector in California. As part of both the Advanced Clean Truck (ACT) and the proposed Advanced Clean Fleet (ACF) regulations, the truck manufactures and fleet owners are required to have an incrementally higher ZEV content when selling or operating a fleet of trucks in California from 2024 onwards. The ACT regulation has already been adopted by five other states in the U.S. (Massachusetts, New Jersey, New York, Oregon, and Washington) and two more states are in the public process required to adopt (Colorado and Main).

The ACT requires amongst other that 5% of all new class 7 and 8 trucks sold in 2024 in California must be ZEV while new additions to fleets of class 7 and 8 trucks operating to and from intermodal seaports and railyards are required to be ZEV from 2024. The ACT regulation also requires 100% of truck manufacturers’ sales in 2040 to come from ZEVs, putting an effective end to sale of internal combustion engine trucks in California and incentivizes investments into infrastructure and supply chain.

There are approximately 1.8 million commercial trucks operating in California daily across a various set of classes including amongst other 219,000 class 7 and 8 trucks. According to CARB, the combined effect from the ACT and ACF regulations will lead to approximately 0.5 million ZEVs on the road by 2035 in California, increasing to 1.6 million in 2050.

About Hexagon Purus

Hexagon Purus enables zero emission mobility for a cleaner energy future. The company is a world leading provider of hydrogen Type 4 high-pressure cylinders and systems, battery systems and vehicle integration solutions for fuel cell electric and battery electric vehicles. Hexagon Purus' products are used in a variety of applications including light, medium and heavy-duty vehicles, buses, ground storage, distribution, refueling, maritime, rail and aerospace.

Learn more at www.hexagonpurus.com and follow @HexagonPurus on Twitter and LinkedIn.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act