Exro Technologies: Positive read-through as Linamar signs eAxle Contract

Exro Website: www.exro.com

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New to the Exro story? Read our Intro post here:

EXRO Technologies (EXRO.TO)

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Quick update today on Exro. A new agreement announced by Linamar last week seemed to go under the radar, but we think has significant read-through for Exro. Linamar announced an agreement to supply their beam eAxle system to commercial truck company Workhorse Group. (Link) Linamar will supply Workhorse with its Medium Duty beam eAxle propulsion system. The system, developed by Linimar’s eLIN group, is the first major eAxle contract with a Commercial OEM (Original Equipment Manufacturer).

Linamar News: LINK

Great…but what does this mean for Exro?

This is a positive development for Exro as the company has been developing the e-beam axle with Linamar for over a year and a half. Linamar highlights Exro as a partner in their corporate presentation (see below). Exro represents the next generation of the technology, as the current Linamar e-beam axle use a standard 3-phase drive inverter. Once Exro completes its development, there is potential for the company to be a part of the majority of Linamar’s e-beam axle line by 2024.

Source: Linamar Investor Presentation

Exro will be starting deliveries of its Coil Drive systems to Linamar starting ins September 2022, with testing to follow over the following several months.  With success on the validation and testing side by Linamar, this could set up positive momentum on the order front looking into 2024.  As a reminder, Exro anticipates is fabrication facility in Calgary will be complete in 3Q 2023.  

We look for positive updates on the Coil Driver testing program and further eAxle contracts signed by Linamar as key catalysts for investors to watch over coming months. 

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