Hyliion to wind down Powertrain operations

Hyliion announced that it will concentrate its future efforts on the KARNO generator while winding down its powertrain operations. The Company will preserve its powertrain technology for potential application in the future. With the recent receipt of CARB certification and launch of extended fleet trials, Hyliion has completed all steps on its well-publicized path to commercialization of the Hypertruck ERX powertrain. Despite these accomplishments, the Company previously announced that its Board of Directors had engaged expert advisors to explore a range of strategic alternatives for its powertrain business. The reasons for undertaking this strategic review included lower-than-expected industry adoption of electrified commercial vehicle solutions, increases in component costs, evolving regulatory requirements, and uncertainty about the ability to raise additional needed capital for ongoing investment in the business. The Company considered a range of options and concluded that discontinuing the powertrain business and focusing on the commercialization of the KARNO generator is in the best interest of Hyliion and its shareholders. Hyliion intends to retain the powertrain technology enabling the Company to explore future use, including a resumption of powertrain commercialization or a sale of the technology and tangible assets from the powertrain division. “The decision around our powertrain business was very difficult, but we believe it is a necessary step to safeguard our financial stability, especially given the current economic climate,” said Hyliion’s Founder and CEO, Thomas Healy. “Our focus on KARNO aligns with the growing demand for electricity. With commercial deliveries planned for the upcoming year, the KARNO generator offers a more capital-efficient path to market,” added Healy.