Deal worth up to €100 million over the next five years
Bombardier Transportation will use Leclanché’s battery systems for rail applications globally.
The two companies signed a memorandum of understanding (MOU) that will enable Swiss-based Leclanché to become the selected supplier for a potential business revenue of more than €100 million over the next five years, delivering battery systems for about 10 different railway projects.
The company’s said the collaboration will reduce the industry’s dependence on diesel engines and lead to a subsequent reduction in greenhouse gas emissions by the railway sector. This partnership will also accelerate the shift from lead-acid batteries to Lithium-ion cells.
Leclanché said its latest generation battery systems provide better density, efficiency and longer life, resulting in lower operational and maintenance costs for end customers. Due to the advantages of Lithium-ion batteries, it is estimated that Lithium-ion battery systems will become the largest share of the train battery market by 2025, the companies said. Independent studies predict, that the demand for rail battery capacity will increase by 400% from now until 2025.
“Leclanché’s ability to cover the complete value chain and the leading cell technologies from design and production of lithium cells in Europe, to full battery systems for railway applications together with our traction technology positions us together as leaders in electrification solutions that will deliver lower operational expenditure and enable environmental sustainability for all train types,” said Frédéric Hendrick, head of Module Center Energy & Motion at Bombardier Transportation.
Anil Srivastava, CEO of Leclanché, said Leclanché is delighted to have been awarded preferred supplier status by Bombardier Transportation, one the world’s leading providers of mobility solutions for rail transport.
“We look forward to working with Bombardier to develop and provide Leclanché battery systems that help to deliver sustainable, connected, zero-emission solutions for the rail industry,” Srivastava said.
This important partnership adds to Leclanché’s exciting portfolio of mandates across the e-Transport sector that will help to accelerate the electrification of transport and reduce the sector’s dependence on fossil fuels. It will increase the trains’ autonomy on the non-electrified part of the rail network. It will also enable to provide hybrid engines compliant with the latest regulations preventing to use diesel propulsion in the cities.