Proterra, a provider of heavy-duty electric transportation, will partner with Mitsui to create a $200 million credit facility in support of a battery lease program.
Mitsui, a leading Japanese investment and trading company, holds a diversified portfolio of businesses in various sectors, including mobility, infrastructure and renewable energy. The battery leasing credit facility, the first of its kind in the North American public transit industry, is expected to lower the upfront costs of zero-emission buses and put Proterra electric buses at roughly the same price as a diesel bus.
“This first-of-its-kind credit facility for public transportation marks a significant development in our evolution to make innovative heavy-duty electric vehicle technology accessible through innovative financing models,” said Proterra CEO Ryan Popple. “Mitsui’s continued support as a trusted partner for this facility will serve as a foundation for the Proterra battery lease program to expand and allow transit agencies across North America to bring clean, quiet transportation to their communities.”
By decoupling the batteries from the sale of its buses, Proterra enables transit customers to purchase the electric bus and lease the batteries over the 12-year lifetime of the bus. As a result of the battery lease, the initial capital expense for the electric bus will be similar to a diesel or CNG bus, and customers can utilize the operating funds previously earmarked for fuel to pay for the battery lease.
Under the 12-year battery lease, Proterra will own and guarantee the performance of the batteries through the life of the bus, decreasing operator risk. This battery lease program removes one of the biggest barriers to electric bus adoption, and transit agencies will now be able to modernize fleets faster and achieve their zero carbon goals sooner.
In 2015, the Fixing America’s Surface Transportation (FAST) Act specifically authorized the ability to lease batteries separate from a vehicle.
Mitsui is a diversified and comprehensive trading, investment and service enterprise, with 139 offices in 66 countries as of April 1, 2019.
Proterra designs and manufactures zero-emission, heavy-duty electric vehicles, enabling bus fleet operators to significantly reduce operating costs while delivering clean, quiet transportation to local communities across North America.
