California-based Balqon has signed a deal with China-based Sichuan Automobile Industry (SAIG) to manufacture inner city electric buses in China.
As part of the deal, SAIG has purchased Balqon's electric drive system to be fitted into a 22ft bus Chassis and will buy Balqon's electric drive system with ZEVQON Flux Vector AC controller, and HIQAP high-energy lithium batteries.
The deal will see both the companies provide engineering resources for combing, testing and certification of the product that will be used in China and North America.
SAIG president Cao Guodong said: "This agreement with Balqon Corporation allows us to leverage their experience and technical expertise in the heavy duty truck and electric bus market."
Balqon president and CEO Balwinder Samra said China's regulatory initiatives and incentives to reduce diesel powered vehicle emissions help commercial viability of new technology electric vehicles.
"The increased rate of urbanization in China has led to renewed emphasis on reducing air pollution resulting from diesel powered buses in the urban centers throughout China," Samra added.