A Canadian electric vehicle maker is considering factory space in the United States as the company seeks to capitalize on the electrified future President-elect Joe Biden has laid out in his program.
Lion Electric, the electric school bus maker slated to go public in months through a blank check merger, plans to open a U.S. plant within the next two years, CEO Marc Bedard told Jim Cramer on Wednesday. from TBEN.
Biden, a Democrat, on the election trail, pledged to allocate public funds to updating transportation infrastructure, including replacing 500,000 school buses nationwide with zero-emission buses. by 2030. The plan includes details to build hundreds of thousands of charging stations across the US
“We are very well equipped to do this. This is also one of the reasons, Jim, that we are opening this plant in the United States in the next two years,” Bedard said in an interview with “Mad Money” . “This plant in itself will allow a manufacturing capacity of more than 20,000 units per year.”
Lion Electric, a private company launched 12 years ago, is expected to begin trading on the public markets when it merges with Northern Genesis Acquisition Corp, a special purpose acquisition company, in a transaction expected to close. conclude in March.
The company plans to use the proceeds to fund its growth plans, including expanding battery production. Lion Electric started selling electric school buses in 2016 and reports having more than 300 vehicles currently on the roads.
In addition to selling buses, Lion Electric also markets a line of commercial urban trucks. The company also has a contract with Amazon, a company that is committed to reducing its carbon footprint, to deliver up to 2,500 units over the next five years.
Bedard explained that the deal commits a maximum of 500 vehicles for sale to the e-commerce giant, leaving capacity for other potential customers. The deal also leaves Amazon the ability to place more orders for the fully electric Lion 6 and Lion 8 trucks.
“This is the start of a very good long term relationship, I hope,” Bédard told Cramer.
Northern Genesis Acquisition shares jumped more than 7% during Wednesday’s session and rose nearly double digits after hours of trading. The stock has run 65% so far this year, closing at $ 29.37 on Wednesday.