The market for electric vehicles has been one of the hottest in the automotive sector for a few years now.
And it continues to gain more and more importance with tough competition. Legacy car manufacturers, startups and the disruptor Tesla (TSLA) compete in the segments of sedans, SUVs/crossovers and pickups/trucks.
In the pickups/trucks segment, for example, we have a huge range of models. Ford (F) is already selling the F-150 Lightning, the electric version of its emblematic F-150.
Rivian (RIVN) has the R1T pickup, a technology-packed vehicle. GM (GM) is already marketing the electric version of its iconic Hummer vehicle and is preparing to launch the electric version of the Chevrolet Silverado. As for Tesla, the long-awaited Cybertruck is expected in 2023. The futuristic design of this pickup/truck is supposed to be a complete game-changer in this segment.
The segment of sedans and SUV / crossover is no longer to be presented as the choice for consumers is wide and this will continue. Automakers announce new models on a regular basis but the question is when will they build models that are really affordable for everyone.
Hyliion
GE Takes a 3% Stake in Hyliion
The truck/van/heavy-duty segment is still a little behind compared to the two just mentioned. Already, there are not many players. Among the known names, we obviously find Rivian, GM via BrightDrop and Ford. There is of course Nikola Corporation (NKLA), (GOEV) and Tesla which has promised to deliver the first copies of its highly anticipated Tesla Semi truck by the end of the year.
It will henceforth be necessary to cite one of the most well-known names in American industry: General Electric (GE). The former conglomerate in full transformation has just taken a stake in Hyliion Holdings Corp (HYLN), which is specialized in the electrification of heavy-duty engines.
"Hyliion acquires revolutionary hydrogen and fuel agnostic generator technology from GE," Hyliion recently tweeted.
According to the press release, Hyliion will integrate a new generator ('Karno') from GE Additive, a subsidiary of GE, onboard trucks that can be powered by various fuels, including hydrogen.
GE has developed an agnostic generator that can accept more than 20 types of fuel, including hydrogen (but also natural gas, or even ammonia). The generator will be integrated into the Hypertruck platform (a first version of which will be released next year).
GE Brings Name Power
"Solving climate change, whether through adopting electric vehicles or reducing emissions from manufacturing sites, requires clean, efficient and dependable electricity," said Thomas Healy, Founder and CEO of Hyliion. "Hyliion will leverage the Karno as the next generation generator onboard the Hypertruck, creating a solution that will operate on various fuel sources that are available today, while remaining future-proofed to run on hydrogen when it becomes widely accessible."
Karno technology improves efficiency by 20% compared to a conventional generator, Hyliion claimed. It would even be more efficient than certain batteries to deliver electric current from renewable energies.
Cedar Park, Texas-based Hyliion is paying $15 million in cash for the acquisition of the technology and approximately $22 million of its own stocks. Upon closing of the transaction and approval from regulators, GE will hold an approximate 3% stake in the electric trucking startup.
This transaction is a good deal for Hyliion which is trying to convince investors that it will survive. Since its IPO via a special purpose acquisition company (SPAC), shares of the electric vehicle manufacturer startup have fallen. The stock is down 40.5%, at $3,6900, since January.
The operation also comes at a time when the automotive industry is affected by a surge in raw material prices due to the disruptions caused to supply chains by the covid-19 pandemic and the Russian war in Ukraine. These events, which unexpectedly raise company prices, are particularly negative for startups looking either to produce their first vehicles or to increase their production volumes.
