Expion360, Inc.(NASDAQ:XPON) shares moved into the green Thursday.
The company, which purports to be an industry leader for lithium batteries and accessories for recreational vehicles (RVs), outdoor, marine, residential and industrial applications, has signed a non-binding letter of intent (LOI) with an Asian producer (the Manufacturing Partner) of lithium battery manufacturing equipment for Expion360 to purchase lithium battery manufacturing equipment in connection with its plans to build a large-scale lithium cell manufacturing facility in Redmond, Oregon.
The lithium battery manufacturing equipment is planned to produce up to 250,000 Type 26650 lithium battery cells per day.
Expion360 plans to utilize the Manufacturing Partner's IP, engineering capabilities and manufacturing equipment to construct and initially operate its planned manufacturing facilities. The Manufacturing Partner is also expected to supply the factory with all the components necessary to manufacture the lithium battery cells and to train Expion360's employees in the operation of the battery manufacturing equipment.
The LOI is non-binding and the procurement of equipment and services thereunder, and the planned manufacturing facilities generally, remain subject to the negotiation of definitive agreements, the Company's financing of the project and performance of counterparties.
Thursday’s news release reported Expion360 expects the engineering plans and site planning of the facility to begin before the end of the year.
Expion360 estimates the cost associated with the construction of the plant to total approximately $450 million. Expion360 plans to utilize a combination of equity, debt and federal grants to pay for the construction project.
XPON shares gathered six cents, or 1.7% to $3.56.
