Westport Fuel Systems and Volvo Group announce investment agreement for expected joint venture

Westport Fuel Systems and Volvo Group have announced the intention to establish a joint venture aimed at accelerating the commercialization and global adoption of Westport’s HPDI fuel system technology for long-haul and off-road applications. The joint venture, subject to certain closing conditions, is set to become operational following the formal closing which is currently expected to occur in the second quarter of 2024.

Westport and Volvo Group: the details of the JV

As stated by the companies, Westport will contribute certain HPDI assets and opportunities, including related fixed assets, intellectual property, and business, into the JV. Volvo Group will acquire a 45% interest in the JV for the sum of approximately US$28 million, payable upon closing, plus up to an additional US$45 million as an earn out depending on the subsequent performance of the JV.

“We are excited to execute this agreement and build on our success with the Volvo Group and our HPDI™ technology. We are motivated to keep innovating and investing in strong business relationships with leading organizations that share our goals, of which Volvo Group is certainly one,” said Dan Sceli, CEO of Westport Fuel Systems Inc. “Powered by our shared vision for a cleaner tomorrow, we look forward to further collaboration and providing real solutions to decarbonize the long-haul and off-road transport sectors.