New partner - in the Defence Sector??? Maybe...
There has been little talk here of the military. I believe that there is a fair to middling chance that one of the NDAs, or perhaps the new strategic partner, is from the defence sector. And that it involves hybrids.
Perhaps less of a stretch that you might first think. Sue previously stated that she was interested in the military space. The enhanced torque/speed profile of the CD would be an excellent fit for these heavy vehicles where operational requirements often trump cost.
Major inverter suppliers such as Vitesco and Borg Warner prefer to play in the high volume passenger car market where they can achieve economies of scale wrt price. This creates an opportunity for EXRO in the alternative markets, which are characterized by lower volume and highly diverse applications.
I believe that this is the "vacuum" that Josh mentioned in the first Q&A, that EXRO is focusing on near term, like buses and trucks, where demand has been "overwhelming". Josh stated that there was increasing interest in EXRO's CD for hybrid, off-road AND military vehicles. This occurred shortly before the hybrid off-road PO was announced. That leaves military hybrids.
DOD plans to hybridize its tactical fleet as a waypoint to full electrification. There is limited funding now. But contractors can read the tea leaves.
Several military OEMs recently have pitched hybrid prototypes, including a hybrid Abrams tank, in anticipation of future contracts. The recent EUROSATORY and AUSA military exhibitions highlighted some of the many electrified platforms that currently are being pursued by OEMs in Europe and the US. Sue reportedly attended the latter...presumably with something more in mind than just to see the tank!
The prize of course is the hybridization of the light tactical fleets. This will include up to 90,000 JLTVs and mil spec HUMVEEs, including retrofits.
The plan calls for this to be completed by 2040, but will likely occur much sooner. Lots happening now. DOD recently awarded two contracts for the independent build and test of a hybrid JLTV and HUMVEE to be completed by end of next year.
Oshkosh Defence or Allison Transmission are two potential partners, depending on whether we are talking Tier 1 suppliers, or OEMs, or both.
Oshkosh Defence is the OEM for the JLTV (the HUMVEE replacement). It introduced a hybrid prototype earlier this year.
Allison Transmission's products are included in both the JLTV and Hummer H1. Allison recently was awarded a contract to develop a hybrid system for military tracked vehicles.
Both companies have large footprints in the military market, and respectively, are industry leaders in commercial trucks and hybrid buses. Both companies would make excellent partners. Both are on EXRO's potential partner list.
A succesful JLTV bid that includes a hybrid would demonstrate to industry that DOD is serious about its climate strategy and would open the door to additional opportunities. A nice place for EXRO to be. Helps fill the vacuum. If EXRO is not playing here, then perhaps it should. IMO