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Exro Technologies Signs Multiyear Agreement with SEA Electric to Supply Coil Drive Systems for Next-Generation Commercial Electric Vehicles

Exro Technologies news
Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or "Exro"), a leading clean technology company that has developed a new class of power control electronics for electric motors and batteries, today announced that it has signed an initial purchase order and multiyear master sales and service agreement (the "agreement") to supply 1,500 Coil Drive System units to industry leading commercial electric vehicle company SEA Electric ("SEA"). Today's announcement is the latest in a series of commercial agreements with Exro's development partners.     

Widely recognized as a market leader in the electrification of commercial vehicles, SEA Electric has a global presence, deploying product in seven countries including USA, Canada, Australia, New Zealand, Thailand, Indonesia and South Africa with collectively more than one million miles of independently OEM-tested and in-service international operation.

Under the agreement, SEA Electric will purchase high-voltage Coil Drive System units from Exro, along with a production slot, system pricing and commissioning services. Pilot vehicle integration will begin as early as November of this year, followed by track and on-road testing in 2023. These testing phases will culminate with series production Exro 400V Coil Drive System units.

The agreement commences with delivery of up to 25 Coil Drive System sample units comprised of a high-voltage Coil Driver™ and an electric motor. These sample units will be used as a part of a joint nine-to-twelve-month pilot program as part of SEA Electric's rigorous on-road testing phase in the company's next-generation F-59 Class 5/6 delivery vehicles. After successful in-field validation, the first purchase order will supply 500 units with deliveries starting in Q4 2023, followed by an increasing volume of production series systems up to a minimum of 1,500 units over the 36-month term of the agreement.

Exro and SEA Electric have collaborated on a wide range of projects since early 2020. Following the development efforts between the companies, this agreement moves the partnership into a new commercial phase for SEA Electric's next generation F59. Exro and SEA Electric continue to collaborate and move forward with additional development projects, including an SiC 800V application for a next generation Mack LR heavy duty truck.

Exro's Coil Driver™ technology accelerates the transition toward electrification in mobility by solving performance-cost trade-offs. The Coil Driver™ is a unique Edison Gold award-winning technology that optimizes the performance and efficiency of electric motors and batteries through power electronics. In e-mobility, this proprietary control technology utilizes the physics of coil-switching to expand the capabilities of motors by enabling two separate torque profiles (low speed torque, and torque at speed), effectively acting as an electronic gear. What this provides is the opportunity for manufacturers, like SEA Electric, to reduce the number of motors, the size of batteries and eliminate the need for mechanical gearing allowing electric vehicles to achieve better acceleration, gradeability, high-speed torque and improved efficiencies for a lower cost.

Automotive-grade Coil Driver™ units will be manufactured at Exro's state-of-the-art manufacturing facility in Calgary, Alberta. The 37,000 square foot facility is unique in North America and utilizes clean energy solutions including solar power and battery energy storage with a net-zero carbon emissions objective. With industry focused on reshoring resources to improve delivery, Exro's sustainable manufacturing capabilities are positioned to be a competitive advantage for customers looking to secure low-risk long-term supply chain components.

"Our goal over the next five years is to eliminate 2.5 billion pounds of CO2 emissions through the deployment of our electric delivery and garbage trucks, shuttle buses, cargo vans, and more, Exro's innovative Coil Driver technology will help accelerate our goal, by enabling the next generation of our electric fleets to consume power more intelligently and with minimal resources or waste."

-Tony Fairweather, Chief Executive Officer of SEA Electric.

We are thrilled to announce another milestone in our partnership with SEA Electric, said Sue Ozdemir, Exro CEO. The project has faced delays as taking new tech to market is never linear, but this milestone is representative of SEA and Exro's joint commitment to next-generation electrification in e-mobility. As we look to 2023 and beyond, our technology is de-risked, and momentum is building with customers like SEA who are looking for a differentiated technology that can improve performance while reducing cost. This latest announcement is a demonstration of Exro advancing to the next phase with a great partner and major industry player, and we are pleased to signal this unlocking of value to the market for our shareholders.

About Exro Technologies  Inc:
Exro is a clean technology company pioneering intelligent control solutions in power electronics to help solve the most challenging problems in electrification. Exro has developed a new class of control technology that expands the capabilities of electric motors, generators, and batteries. Exro enables the application to achieve more with less energy consumed.

Exro's advanced motor control technology, the Coil DriverTM, expands the capabilities of electric powertrains by enabling intelligent optimization for efficient energy consumption. Exro is working with many partners from all over the world to bring their technology to the electric mobility industries and beyond.

About SEA Electric Inc:
Global automotive technology company SEA Electric was founded in Australia in 2012, creating its proprietary electric power-system technology (known as SEA-Drive®) for the world's urban delivery and distribution fleets, as well as front powered school bus applications.

Widely recognized as a market leader in the electrification of commercial vehicles on a global basis, SEA Electric commands a global presence, deploying product in six countries including USA, Australia, New Zealand, Thailand, Indonesia, and South Africa with collectively more than one million miles of independently OEM-tested and in-service international operation.

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