Ideanomics Inc (NASDAQ:IDEX) said Monday that its subsidiary Mobile Energy Global (MEG) has struck a strategic framework agreement with leading electric vehicle (EV) truck and bus maker, BeiBen Heavy Truck Company Ltd.
In a statement, the fintech company said the agreement is designed to establish a long-term strategic partnership that will boost “the speed and efficiency of commercial vehicle adoption.” The agreement is preliminary at this stage and will be subject to legally binding definitive transaction documents to be negotiated between Ideanomics and BeiBen.
Under the agreement, BeiBen will provide electric heavy truck manufacturing, research, sales, operations, and other resources. In return, MEG will provide its existing new energy vehicle platform including its financial services network, marketing capabilities, government relationships, and access to partners in China and Southeast Asia.
The company said the scope of the cooperation between BeiBen and Mobile Energy Global includes, but is not limited to:
• Facilitating electric heavy-duty truck sales in China, starting with Inner Mongolia mines and the port of Qingdao;
• Partnership to expand into Southeast Asia through Treeletrik;
• Broad financing partnership such as establishing funds to facilitate enterprise purchases, asset securitization, and advisory services;
• MEG has also initiated electric vehicle truck customer testing and is currently completing full operation trials with select mines.
Ideanomics CEO Alf Poor noted that heavy trucks, like those used in mining, comprise “a small fraction of vehicles used in commercial fleet operations” and yet are responsible for contributing a “disproportionately large amount” of the pollutants released into the environment.
“We are proud to collaborate with BeiBen, a leading truck manufacturer committed to EV advancement, who will bring a tremendous amount of strategic value and resources to our manufacturing partners alliance for the benefit of our commercial fleet customers," CEO Poor added.
The BeiBen Heavy Truck Company is a leading heavy-truck and bus manufacturer based in inner Mongolia, in China. It was founded in 1988 when BeiBen signed a deal with Daimler-Benz to make Mercedes-Benz trucks in China with CKD kits assembled by BeiBen. The idea was that the trucks would contain 90% domestic parts within a few years.
"MEG's comprehensive commercial EV solutions complements our leading EV manufacturing capabilities and industry expertise. This symbiotic partnership will accelerate the pace of clean energy vehicle adoption and meaningfully improve the environment," said BeiBen chairman Fan Zhiping.
Ideanomics is a global company focused on monetizing the adoption of commercial electric vehicles and developing next-generation financial services and fintech products. Its electric vehicle division, Mobile Energy Global, provides group purchasing discounts on commercial electric vehicles, EV batteries, as well as financing and charging solutions.
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