Published on 4 Nov 2021 on Zacks via Yahoo Finance
Fisker (FSR) Inks Long-Term Battery Supply Deal With CATL
Fisker FSR recently announced an agreement with Contemporary Amperex Technology Co Ltd (“CATL”) to acquire batteries of two different chemistries for its upcoming all-electric Fisker Ocean SUV.Per the agreement, CATL will provide small and large battery packs to Fisker, with an initial battery capacity of more than 5 gigawatt-hours annually, from 2023 through 2025. The primary high-capacity pack will use a lithium nickel manganese cobalt (NMC) cell chemistry, while the second smaller pack will be based on lithium-ion phosphate (LFP) chemistry. Together, the two different batteries will enable Fisker to offer a line-up of different ranges and levels of performance to consumers when the Ocean is rolled out. CATL is a global leader of new energy innovative technologies, committed to providing premier solutions and services for new energy applications worldwide. This battery manufacturer has an expertise in battery cells for electric vehicles (EV) and energy storage solutions (ESS). CATL is a major manufacturer of batteries for many big names, including Tesla TSLA.Since 2020, the Fisker and CATL teams have been working together to develop class-leading Fisker battery solutions, structured to withstand crashes and delivering high levels of energy density.
The latest agreement is a win-win deal for both companies. As CATL expands its global footprint to achieve carbon-free transportation for all, its battery technology will be unique to Fisker’s products and support the former to attain its sustainability, performance and growth objectives.For Fisker, the latest agreement with CATL marks the achievement of an important milestone in the development of its Ocean SUV and achieving its battery performance objectives. By banking on CATL’s multiple battery chemistries and efficiency, Fisker will be able to achieve its targeted driving range for Ocean SUV. Moreover, Fisker will utilize CATL’s unique dual-chemistry cell capability to optimize vehicle performance and achieve cost effectiveness across the Fisker Ocean line-up.Along with catering to the packaging requirements for the Fisker Ocean program, the battery packs will have enhanced features that will enable drivers to directly charge the EV batteries from the optional solar roof. Further, both battery pack solutions will be developed to support peak charging powers of more than 250 kilowatts.The latest agreement illustrates how CATL and Fisker are joining forces on battery technology to achieve a dominant position in the electric mobility industry.California-based Fisker, closest peer of which is Hyliion Holdings HYLN, is set to begin production and deliveries of its flagship vehicle, the Ocean electric SUV, in November 2022. The EV start-up has been drawing massive attention from investors amid the soaring popularity of green vehicles. Fisker had also entered into a manufacturing agreement with Magna MGA in June to commence the production of its Ocean SUV on the latter’s world-class manufacturing facility in Graz, Austria.Fisker is on track to unveil the production-intent version, including the additional battery specifications and product features of the Ocean SUV, on Nov 17, at the Los Angeles Auto Show.
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