Hyliion plans a larger battery to stay relevant in electric track racing

At risk of surrendering ground in competition for battery-powered trucks, Hyliion Holdings is a natural gas generator-powered hybrid power with 75 miles of electricity enough to certify the Zero Emission Credit Hypertruck ERX in California. The train will be released.

“I thought it was a way related to the government’s push towards zero-emission vehicles,” CEO Thomas Healy said in an interview Wednesday. “We can participate in it, but it still offers all the same benefits that our products have from the core.”

The main advantage is a driving range of up to 1,000 miles. 75 miles of that is pure electricity. Currently, there are no battery-powered electric trucks that exceed 300 miles on a single charge and are limited to regional and regional use. Batteries with higher energy density, such as those developed by Quantumscape Corp. (NYSE: QS) And Romeo Power Inc. (NYSE: RMO), You can change it.

Obtaining zero emission credits

Hylion (NYSE: HYLN), Make sure that the natural gas and hydrogen fuel cells do the same — power the batteries to power them. Long-range batteries help meet California’s requirement that 9% of state-operated company commercial trucks have zero emissions from 2024.

Fleets can use zero-emission credits, such as three-quarters of the credits generated by the purchase of Hyliion powertrains, to offset pollution from diesel trucks.

“We are not 100% credit, but not 5% credit,” Healy said.

“Think about how many markets we have just opened,” he said. “With products currently on the market, we’re talking about a range of less than 200 miles.” Hey, get credit for zero-emission vehicles across that market segment, from 100 to 600 miles a day. can.”

Few customers are signing up for urgency, which is a frequent complaint of posters to Hyliion’s social media accounts. Hypertruck ERX is an unproven technology, so there are many expressions of interest, but orders are low.

This week, Hyliion booked Detmar Logistics’ 300 Hypertruck ERX systems serving the Fraxand industry with non-binding reservations. Detomer ordered 10 Hyliion hybrid electric units in May For remodeling a Class 8 Volvo model.

“Most fleets will take the single-digit option. No one comes in and doesn’t mean to say,’I’m ready to ride 200 trucks’ without trying it. “

Hyliion Holdings, CEO, Thomas Healy

“Most fleets will adopt single-digit options,” Healy said. “No one is going to come in and say’I’m ready to ride 200 trucks’ without trying it.”

The exceptions were American Natural Gas and Kuwait-based Agility Logistics, which were able to publish reservations for 250 and 1,000 hypertracks, respectively. ANG is affiliated with Hyliion With natural gas infrastructure Agility is an investor in Hyliion.

April, Hyliion Hypertrack Innovation Council Fleet, logistics, and transportation companies such as Ryder System Inc., Penske Truck Leasing, Anheusher-Busch, Schneider National, and Werner Enterprises will test the Hypertruck ERX prototype by the end of this year.

Hyliion’s long-term vision is to be a factory-installed powertrain option for major truck manufacturers, as well as the engines of Tier 1 supplier Cummins, which are offered with their powertrains.

Meritor supplies ERX instead of Dana

Until then, Hyliion relies on bodybuilders such as Fontaine Modification to retrofit trucks purchased from Peterbilt to the ERX system. Hyliion and Meritor Inc. (NYSE: MTOR) This week, Meritor’s 14Xee-powertrain is Dana Inc. (NYSE: DAN), Tortoise Acquisition Corp in October last year. An early investor in Hyliion before it was released under the sponsorship of.

“We have closed an exclusive transaction with Dana,” Healy said. “We will continue to use Dana components. They are still supplying us. [There’s] There is still a strong relationship. However, as we followed the product roadmap, we decided to choose Meritor Axle as the launch solution for Hypertruck. “

The Hyper Truck ERX, which Hyliion will showcase at the Advanced Clean Truck Expo in Long Beach, California in late August, features a 75-mile microwave oven that requires a larger battery. This could mean a different supplier than Toshiba, which can fully charge 25 miles of pure electric drive on the base ERX in 8 minutes with lithium titanate secondary technology.

Hyliion decided to expand its electrical range after hearing what the government, especially California, was expecting from truck makers. The company is still deciding who will supply its key components.

Stocks under pressure

Hyliion continues to grow its physical presence in Austin, Texas, with a larger footprint and more employees.

However, Hyliion’s share price, which once reached $ 58 per share, is below the initial asking price of $ 10, along with other shares. Electric car startup.

“It’s clearly difficult to lower the stock price to around $ 10 per share,” Healy said. “If we were unique, I would probably be more worried. It wouldn’t hurt credibility at all, but in contrast to the current situation, we’re looking at what’s going to happen.”

So Healy doesn’t have to panic. The company had $ 600 million in cash at the end of the first quarter and is reporting results for the second quarter next week. Cash burns may be accelerating, but don’t expect the pre-earning status to change significantly.

“From a cash capital perspective, we are in a good space,” he said. “I know there were some [electrification startups] “Hey, we already need to raise,” he says. As you can see from the balance sheet, we are currently in a fairly strong cash position. “

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Click here for more Freight Waves articles by Alan Adler. Hyliion plans a larger battery to stay relevant in electric track racing

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