EAST WINDSOR, NJ / ACCESSWIRE / August 23, 2023 / Greenland Technologies Holding Corporation (NASDAQ:GTEC) is bringing electrification to the heavy equipment industry under its brand HEVI Corp.
"I wanted to take my team's expertise and contribute toward the overall social benefits of supplying clean and alternative technologies," said Raymond Wang, founder and CEO of HEVI. "I do not see another solid player coming into the market for the next five to seven years."
HEVI's products will contribute to a range of industries that could benefit from electrification. Because Wang believes there are no other companies seriously investing in electric heavy equipment, this creates an opportunity for HEVI to become a sticky player in the market.
Demand For Electrification In Multiple Markets
Heavy machinery - that is anything over 10,000 lbs. - produces 25% of transportation greenhouse gas emissions globally while only making up 10% of vehicles. HEVI produces electric loaders, excavators and forklifts to support multiple industries that want to transition their heavy machinery to electric. These sectors include agriculture, construction, waste management, mining, warehousing and manufacturing.
This gives HEVI a potentially large total addressable market. For example, the global construction equipment market alone was worth $191 billion in 2022. It is predicted to have a compound annual growth rate (CAGR) of 8.4% from 2023 to 2030.
There are also opportunities developing in the agriculture sector that are driven in part by regulatory pressures from governments, as well as by the efficiencies available through electrification. The global market for electrical tractors is expected to have a CAGR of 11% over the five-year period from 2021 to 2026, reaching $218.9 million in 2026.
Meanwhile, the warehousing and manufacturing sector is driving a rise in demand for electrical forklifts. The electric forklift market was worth $58 billion in 2022 and is predicted to reach $84 billion by 2027, growing at a CAGR of 7.5% during the 5-year period.
Mining is another major sector that is facing pressure to adopt electrification, and that could also benefit in the long term from the transition. Renewable electricity could help lower maintenance costs for equipment and improve the efficiency of mining operations. The mining equipment market was worth $135 billion in 2022.
The electrification of heavy machinery in these sectors could be an attractive opportunity not only because it reduces pollution but also because it can deliver greater efficiencies and a lowered total cost of ownership.
HEVI plans to shift the manufacture of its electric heavy equipment product line to the United States to better address the needs across these various industries. They have already established an assembly facility outside Baltimore, Maryland where they will use their extensive background in transmission and drivetrain systems to produce their electric heavy-duty machines.
What Does HEVI Bring To The Market?
As well as reducing emissions, HEVI is looking to make the transition to electric heavy equipment an easy one for companies. Advantages of HEVI's products and business model include:
- Long-Lasting Batteries: HEVI's lithium-ion batteries can last over a full work day (nine hours) and have a 10-12 year life cycle. Manufactured by world leader CATL, HEVI's batteries have a capacity of up to 282 kilowatt hours at 660 volts.
- Affordable: HEVI keeps a comparable price tag to non-electric alternatives, with its front-loader, the GEL-1800 costing $135,000, against a $140,000 price tag on a comparable diesel model. It could also produce long-term savings, with Wang estimating a decrease in maintenance costs of 40% and fuel savings of over $25,000 every year.
- Focused: The company is currently laser-focused on supplying the Mid-Atlantic states. It chose Baltimore as the site of its first facility because its location makes it a feasible distribution hub. Choosing this location means HEVI is able to maintain stable supply lines that can provide customers with spare parts on the same or the next day.
- Energy-Conscious: All-electric vehicle line has long operation times, less noise, and zero operating emissions. HEVI's comprehensive range of attachments also provides equipment to meet the specific needs of customers.
"We understand that we are at the forefront in converting people to a new technology, said Wang. "We want to make it easy for them to adopt electrified equipment."
Wang continued, "The key to the adoption of electric heavy equipment is it must make sense on paper first. Then companies can consider the added benefit of our machines saving more than 100 tons of CO2 per year, their noise reduction, and all the other diverse benefits that come from running electric machines."
Other companies producing models for electric heavy equipment include John Deere and Caterpillar Inc.
Featured photo courtesy of HEVI Corp.
SOURCE: Greenland Technologies