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Wednesday, Jun 29, 2022

Romeo to Electrify the Diesel Sector

Romeo Power Inc. in Vernon said it’s working with Wrightspeed Inc., an Alameda-based maker of EV powertrains “to accelerate electrification in the bus, and medium and heavy-duty truck market.”

The two companies will develop and sell powertrain and battery kits to convert diesel-powered buses and trucks into zero-emission, full-battery electric vehicles. The chassis-specific kits will include a traction-drive axle with motors, inverters and battery modules. Romeo Power will supply the battery packs, which will be manufactured at its new 215,000-square-foot headquarters in Cypress that’s set to open in July, and assembled into a kit at Wrightspeed’s factory in Alameda.

The company, which posted $16.8 million in revenue last year, will also widen its focus “to develop customers in other market segments, including marine, last-mile vehicles, construction, agriculture equipment and ancillary power systems,” Chief Executive Susan Brennan told analysts during an earnings call on March 1. “The existing configurations of our batteries fit the needs of these industries in their current configuration with no redesign required. … Already in only the first two months of 2022, we have finalized the three-year contract extension with a longstanding customer in commercial vehicle technology, fulfilled the first orders for a marine customer that offers multiple electronic electric vessels and delivered initial samples to customers in four other market segments who are testing Romeo’s product for potential integration into their respective electrification plans.”

Market diversification will be less complicated, Brennan said, after Romeo acquired BorgWarner Inc.’s interest in the company for $28.6 million in February. The Michigan-based auto parts supplier had a 20% stake in Romeo.
“We now fully control one of our most valuable assets, our intellectual property,” Brennan said.

Paola Mendez
Paola Mendez
Paola Mendez graduated from Los Angeles Valley College, then transferred to University of California, and now serves as a Receptionist and Office Assistant to the Los Angeles Business Journal. Paola wears many hats in different departments and is trilingual in English, Spanish and French.

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