MILAN (Reuters) - CNH Industrial’s (CNHI.MI) engines business FPT Industrial has signed a preliminary agreement to develop and offer battery power systems in partnership with U.S. company Microvast.
Industrial vehicle maker CNH - controlled by Exor (EXOR.MI), the holding company of Italy’s Agnelli family - last month said it was planning to produce batteries for electric powertrains as part of an overhaul of Italian plants in its construction and engine operations.
Microvast will help FPT Industrial to design and assemble battery packs in-house at its facility in Turin, northern Italy, CNH said in a statement, without disclosing the financial terms of the agreement.
“CNH Industrial is committed to entering into targeted partnerships to deliver advanced alternatives to traditional fuels,” said Chief Executive Hubertus Muhlhauser.
As part of the agreement, FPT Industrial will also design and engineer a new platform to develop and produce complete electrified powertrain systems.
A final agreement is expected by the first quarter of next year, CNH said.
Reporting by Giulio Piovaccari; Editing by David Goodman