REDMOND, OR / ACCESSWIRE / June 9, 2022 / Expion360, Inc. (NASDAQ:XPON), an industry leader for lithium batteries and accessories for recreational vehicles (RVs), outdoor, marine, residential and industrial applications, has signed a non-binding letter of intent (LOI) with an Asian producer (the Manufacturing Partner) of lithium battery manufacturing equipment for Expion360 to purchase lithium battery manufacturing equipment in connection with its plans to build a large-scale lithium cell manufacturing facility in Redmond, Oregon. The lithium battery manufacturing equipment is planned to produce up to 250,000 Type 26650 lithium battery cells per day.
Expion360 plans to utilize the Manufacturing Partner’s IP, engineering capabilities and manufacturing equipment to construct and initially operate its planned manufacturing facilities. The Manufacturing Partner is also expected to supply the factory with all the components necessary to manufacture the lithium battery cells and to train Expion360’s employees in the operation of the battery manufacturing equipment. The LOI is non-binding and the procurement of equipment and services thereunder, and the planned manufacturing facilities generally, remain subject to the negotiation of definitive agreements, the Company’s financing of the project and performance of counterparties. Expion360 expects the engineering plans and site planning of the facility to begin before the end of the year.
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Following the anticipated signing of a definitive agreement with the partner, Expion360 plans to begin the design of the facility and secure the funding necessary for the project. Expion360 estimates the cost associated with the construction of the plant to total approximately $450 million. Expion360 plans to utilize a combination of equity, debt and federal grants to pay for the construction project.
“The launch of this large-scale factory project is a major step both for Expion360 and other companies in the U.S. that would benefit from a domestic source of 26650 cylindrical lithium-ion batteries,” stated company CEO, John Yozamp. “The biggest constraint for clean energy power and electric mobility manufacturers today is their supply chain and the sourcing of lithium-ion batteries. We intend to alleviate these constraints with our new mega battery factory.”
China is currently the world leader in global lithium battery supply chain, with it controlling more than 70% of the total global lithium-ion battery manufacturing capacity. The new Expion360 large-scale factory is anticipated to meet the growing demand for lithium batteries and reduce reliance on foreign manufacturers as the U.S. continues its transition towards a clean energy economy.
For further details about the company’s preliminary agreement see the Expion360 Form 8-K filed with the U.S. Securities and Exchange Commission at www.sec.gov, and also available in the investor relations section at Expion360.com.
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About Expion360
Expion360 is an industry leader of premium lithium batteries and accessories for recreational vehicles, outdoor, marine, residential, and industrial applications. The company sources, assembles and white-labels components and finished products. Its 360 (12V/360Ah) is 3.5x the capacity of average RV battery and is unique in form factor. Founded in 2016 by the company’s CEO, John Yozamp, Expion360 designs and engineers its batteries out of its headquarters in Redmond, Oregon. For more information visit, expion360.com.
Forward-Looking Statements and Safe Harbor Notice
All statements other than statements of historical facts included in this press release are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as “projected,” “expect,” “possibility” and “anticipate.” The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company’s Prospectus filed with the SEC on April 4, 2022, previous filings, subsequent filings and future periodic reports filed with the SEC. All of the Company’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
The Company cautions that statements and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release.
Investor Contact:
Ronald Both or Justin Lumley
CMA Investor Relations
Tel (949) 432-7566
Email contact
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CMA Media Relations
Tel (949) 432-7572
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SOURCE: Expion360 Inc.
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https://www.accesswire.com/704445/Expion360-Signs-Non-Binding-LOI-to-Purchase-Lithium-Battery-Manufacturing-Equipment-in-Connection-with-its-Plans-to-Build-Large-Scale-Lithium-Cell-Manufacturing-Facility-in-Redmond-Oregon