US lithium-ion battery manufacturer XALT Energy has signed a $1billion deal to supply batteries to Hybrid Kinetic Group (HK Group).
The global exclusive agreement will see Xalt’s (formerly known as Dow Kokam LLC) lithium Titanate (LTO) batteries used in HK Group’s electric buses in China.
Production at XALT’s its manufacturing facility in Midland, Michigan, is expected to begin during the 3rd quarter of 2015.
In a move that’s also revealed a name change, XALT Energy LLC acquired the assets of MAHY E-Cell, a joint venture between Magna International of America Inc. and HHI Battery Co. Ltd.
In exchange for the joint venture’s assets and a cash investment, Magna and HHI received a minority interest in MBP Investors LLC, the majority owner of XALT.
The company, which was previously known as Dow Kokam LLC, researches and produces lithium-ion batteries in Lee’s Summit and Michigan.
The multi-year contract will create 300 high-tech and manufacturing jobs in Midland this year, with 80 positions expected to be filled next month.
The electric buses will be powered by XALT’s 68-100 KWh high performance rapid charging batteries, which boast a 10 minute recharge time. The electric buses will be leased to municipal transit operators throughout China.
To date, XALT has invested more than $600 million in its fully-automated flexible lithium chemistry-based manufacturing facility in Midland.
The company currently employs 130 people to develop and manufacture prismatic, large-format lithium-ion battery cells and packs.