Exro Technologies Inc. (TSX: EXRO) (OTCQB: EXROF) (the "Company" or "Exro"), a leading clean-technology company that develops new generation power-control electronics that expand the capabilities of electric motors and batteries, is pleased to provide an update on commercialization efforts for its Cell Driver™ Energy Storage System ("Cell Driver™"). Re:Build Manufacturing ("Re:Build") is now Exro's exclusive manufacturing partner for Cell Driver™. Exro also announces new channel sales partnership agreements with renewable energy and energy management integrators that provide access to commercial and industrial ("C&I") markets in California, Colorado, Florida, the Caribbean, and regions within Canada.
"We continue to make steady progress advancing our go-to-market strategy for our Cell Driver™ technology in order to satisfy the growing demand for energy storage," said Exro CEO Sue Ozdemir. "Our partnership with Re:Build provides us the ability to leverage a world-class manufacturing partner to immediately scale operations and eliminate from our balance sheet the significant capex and working capital that would otherwise be required. In addition, our new channel partners amplify our reach to commercial and industrial customers who want to save money on increasing utility costs, secure a reliable backup source of energy, and contribute to the sustainability of the communities in which they operate. As we prepare to achieve UL certification in the next few months and scale our energy storage business, this opportunity to unlock value for our shareholders is significant."
Re:Build Manufacturing Partnership
Re:Build (https://rebuildmanufacturing.com/) is a network of businesses that combine cutting-edge enabling technologies with operational superiority in aerospace and defense, cleantech, health, industrial equipment, lifestyle, and mobility. The company's expertise is in product innovation, advanced components, systems production, and industrial automation. Its customers value it as a trusted manufacturing partner.
Under the partnership, Exro will provide Re:Build with the battery control system power electronics and Re:Build will be the exclusive manufacturer of Exro's Cell Driver™ cabinets for an initial term of five years. In exchange for this exclusivity, Re:Build will pass along to Exro 50% of any savings created by the manufacturing process. Re:Build will also set up and manage a highly efficient supply chain that will include components it manufactures and those it purchases, and it will assemble and test the finished products. Re:Build will be responsible for all capital expenditures, supply chain, and inventory working capital requirements associated with manufacturing the Cell Driver™, thereby removing considerable future funding and working capital requirements from Exro's balance sheet. Built in the United States, the Cell Driver™ will also qualify for 'Buy America' incentives available to customers.
Channel Partnership Agreements
Exro's go-to-market strategy for its Cell Driver™ Energy Storage system is to access C&I markets through a network of renewable energy, energy management, and electric vehicle charging infrastructure integrators and distributors that provide access across North America. This strategy is intended to accelerate and amplify Exro's market presence, targeting these channel partners growing demand for energy storage in C&I applications as well as EV charging stations. Over the course of the last two months, Exro has onboarded new channel partners that provide access to customer networks in California, Colorado, Florida, the Caribbean, and regions within Canada. These channel partners have been trained on Cell Driver™ and are currently marketing and quoting the technology with solar energy, electric vehicle charging infrastructure and energy management projects. A summary of these new partners is provided below.
Photovoltaics California (PVCA)
-
Overview: California is a service and maintenance oriented electrical contractor supporting long term client energy requirements specializing in PV and storage. PVCA provides access to target rich California market.
-
Status: Entered a Channel Partnership Agreement. Providing training for sales force and commercial / technical support for proposals via Energy Toolbase. First orders anticipated by the end of Q3 2023.
-
Opportunity: PVCA is a highly active installer and O&M provider in the California region with a pipeline of Cell Driver™ units in various segments (primarily Solar + Storage). Multi-year revenue opportunity with visibility to projects 2023-2025.
-
Application: Exro is actively quoting projects in conjunction with PVCA installation costs.
ProSolar
-
Overview: US Virgin Islands-based multinational solar and storage integrator with offices in USVI, Puerto Rico, Florida, and California. ProSolar is the largest solar integrator in the Caribbean region who brings a wealth of experience operating in the Caribbean.
-
Status: Entered a Channel Partnership Agreement. The companies are actively reviewing various sites to identify a suitable host project for Cell Driver™ in the Caribbean.
-
Opportunity: Multiyear revenue opportunity focused primarily on the Caribbean market with significant expansion opportunities into Florida and California. The relationship provides visibility into the 2023-25 demand cycle.
-
Application: Reliable grid tied backup power, off grid power, microgrid and solar self consumption.
Shaw Solar
-
Overview: Regional solar and electrical contractor servicing Western Colorado. In addition to new installations, Shaw has completed an extensive number of smaller commercial and light industrial projects which potentially stand to benefit from Cell Driver™.
-
Status: Entered a Channel Partnership Agreement. The companies are actively reviewing various sites to identify a suitable host project for Cell Driver™ in Western Colorado.
-
Opportunity: Multiyear revenue opportunity providing guidance into the 2023-25 demand cycle.
-
Application: Demand charge management, off grid power, grid tied backup power and energy management innovation and leadership.
High Point Electric
-
Overview: British Columbia-based electrical and energy management contractor focused on large retail box stores including London Drugs, Loblaws and others.
-
Status: Entered Channel Partnership Agreement. High Point is actively reviewing their portfolio of retail box stores located in BC, Canada to identify locations which will benefit from Cell Driver™.
-
Opportunity: Multiyear revenue opportunity to enter large box retailers in Canada.
-
Application: Demand charge management and grid tied backup power.
Cell Driver™ UL Certification Update
Having now completed two of the three certification phases, Exro's Cell Driver™ is on track to complete UL certification in early Q3 2023, pushed back by approximately three weeks due to scheduling at UL's certification laboratories. UL certification is required prior to connecting to the grid in North America. Certification will be followed by the start of series production for Cell Driver™ beginning with in-field pilots and initial customer deliveries in Q3 2023.
About RE:BUILD Manufacturing
Founded in 2020 with six employees, Re:Build Manufacturing now employs more than 850 people across eleven business units with facilities in Massachusetts, New Hampshire, New York, Michigan, Ohio, South Carolina, Colorado, and California. Re:Build Manufacturing is dedicated to building a better future for its employees, customers, partners, communities, and shareholders through a new model of industrialization. The company is focused on revitalizing America's manufacturing base and creating meaningful, sustainable jobs in areas that have been deindustrialized.
About Exro Technologies Inc.
Exro Technologies Inc. is a leading clean technology company that has developed new generation power control electronics that change how the world optimizes energy by expanding the capabilities of electric motors and batteries. The company's innovative technologies serve to bridge the performance-cost gap in e-mobility (Coil Driver™) and stationary energy storage (Cell Driver™), and act to accelerate adoption towards a circular electrified economy by delivering more with less – minimum energy for maximum results.