Lightning eMotors inks $850M deal to build electric buses

LOVELAND — Lightning eMotors Inc. (NYSE: ZEV) continues to carve out a substantial niche for itself in the electric-vehicle market, entering a $850-million agreement with an Indiana manufacturer to build electric buses. 

The value of the deal with Forest River Inc., which makes recreational vehicles, pontoon boats, cargo trailers and buses, is roughly equivalent to the value placed on Lightning eMotors during its go-public merger when that move was disclosed late last year. 

The news of the Forest River contract sent Lightning’s stock soaring Tuesday, boosting the price by nearly 81% on the day.

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Lightning eMotors will provide powertrains for as many as 7,500 zero-emission shuttle buses by 2025. Those components will be built in the company’s Loveland manufacturing facility. Final assembly will occur at Forest River’s operation in Elkhart, Indiana.

“This has the potential to be the largest contract ever in the electric shuttle bus market, and we believe it will be the catalyst for other large commercial vehicle OEMs and fleets to accelerate their adoption of commercial electric vehicles,” Lightning CEO Tim Reeser said in a prepared statement. “Forest River’s family of shuttle bus companies, including top name brands such as  Starcraft, Glaval, and Champion, maintain a dominant market position selling more than 10,000 units per year in the Class 4 to 6 shuttle-bus space. Forest River’s sales volumes allow us to provide a price point to their dealers and customers that results in a very compelling ROI. We believe this commitment from the largest shuttle bus manufacturer in the U.S. demonstrates that it believes that commercial vehicle customers are now demanding Lightning eMotors’ zero-emission vehicles over ICE vehicles.”

The Forest River buses powered by Lightning eMotors are expected to be able to travel as many as 160 miles on a single charge.

Customers could include transit agencies, airports, parking lots, hotels, and corporate and university campuses, the companies said in a news release. 

“We decided to work with Lightning eMotors after several years of extensive research because of its market and technology leadership in the commercial EV segment,” David Wright, president of Forest River’s bus divisions, said in the release. “I was especially impressed after visiting its manufacturing facility in Colorado, driving its vehicles, and talking to its customers. It is clear why Lightning eMotors is at the forefront of fleet electrification. We’ll be providing our customers with a factory-installed electric powertrain that has proven technology relied upon by major fleets, at a price point no one else has been able to achieve. We believe this will be a game changer for shuttle-bus operators.”

Lightning eMotors has completed its merger with Palo Alto, California, based GigCapital3 Inc. and began trading on the New York Stock Exchange in May. GigCapital3 was formed as a special-purpose acquisition company, or SPAC, a shell entity formed with the intention of going public, then merging with another company, enabling that company to go public without its own initial public offering.

Lightning eMotors has grown rapidly, leasing 231,000 square feet in The Forge, the former Hewlett-Packard Co. campus in southwest Loveland, with an option for additional space.

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