The Stock of Canadian EV Bus Startup Lion Electric surged more than 11% on Tuesday after the Company announced an order of 1,000 School Buses for Student Transportation of Canada.
The purchase order is conditional upon the satisfactory grant of non-repayable contributions to STC under Infrastructure Canada’s Zero-Emission Transit Fund (“ZETF”), for which STC has filed a formal application.
Market Participants saw this as a great development for the Electric Vehicle Company and the Stock Price moved accordingly.
“As the controlling shareholder of Student Transportation, we are delighted to support the company in its green shift, with the deployment of a fleet that would make it the largest operator of zero-emission school busses in North America. Driving the next generation to their place of learning in electric transport is a good illustration of our vision for a more sustainable future. This ambitious program, carried out thanks to Lion, the Quebec leader in electric transport, will directly contribute to our commitment to reduce the carbon intensity of our portfolio by 60% by 2030,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ.
Under the ZETF program, the Government of Canada aims to invest $2.75 billion over five years to support public transit and school bus operators in the transition to electrification.
If confirmed, this purchase order would allow STC to become the largest operator of zero-emission school buses in North America. This investment would also contribute to CDPQ’s portfolio decarbonation objectives. Deliveries would begin in 2022 and occur through the first half of 2026.
These electric buses would replace existing diesel vehicles within STC’s Canadian fleet. The operator plans on working closely with its customers and partners to determine which school boards would adopt the electric buses if fulfilled.
“We applaud STC for its leadership and vision to accelerate the deployment of all-electric school buses in Canada, and we thank them for trusting Lion with such an important transition” said Marc Bedard, CEO – Founder of Lion Electric. “This large-scale deployment would position Canada as a clear leader in the electrification of school transportation, in great part due to innovative programs like the ZETF. We are proud to be working together with STC, the Caisse de dépôt and the Canadian Federal Government to provide a cleaner future for our children,” he concluded.
Lion Electric had quite a year so far. We also just recently reported that the Company presented the first electric ambulance.