Ideanomics announces the acquisition of 15 percent of California-based Solectrac.
FREMONT, CA: Ideanomics announces today that it has acquired 15 percent of California-based Solectrac, Inc. for the consideration of $1.3 million. Solectrac develops, assembles, and distributes 100 percent battery-powered electric tractors, which is an alternative to the diesel tractors, for agriculture and utility operations. With this investment in Solectrac, Ideanomics broadens its global footprint in the electric vehicle (EV) industry, particularly in the category of speciality commercial vehicles. This investment marks its first presence in an prevailing US-based OEM, and Ideanomics will assume a place on Solectrac's Board of Directors.
"We are very impressed with Steve and the Solectrac team and their deep knowledge of the agricultural sector. We have been interested in this industry for some time because we knew EVs could have an immediate impact without the need for extensive infrastructure," states Alf Poor, CEO of Ideanomics. "Solectrac is a pioneer in the electric tractor market and shares our motivation and passion for a cleaner tomorrow."
Considering the market research, the global agricultural tractor market is presently valued at $75 billion, with the North American agrarian tractor market predicted to reach $20 billion by 2023. The most significant segment for agricultural tractors is the below-40HP segment, where the Solectrac's initial three models address the broad requirements of the market. Its tractors are specially designed to serve the requirements of a community-based farm, vineyards, equestrian arenas, orchards, greenhouses, and hobby farms.
"With our zero-emission electric tractors, tractor operators don't have to choose between power and environmentally friendly practices," said Steve Heckeroth, CEO and founder of Solectrac and visionary in the renewable energy and EV industry. "My life's work has been dedicated to creating clean, renewable alternatives to fossil fuels. Now—with Ideanomics and the company's unique experience and industry perspective—we are well-positioned to achieve these goals."
Founded in 2012 to take the electric tractors into commercial production, Solectrac was included as a California Benefit Corp in 2019. It has gained grants from the Indian U.S. Science and Technology Fund (IUSSTF) and the National Science Foundation (NSF). Earlier this year, Solectrac was rewarded with the World Alliance Solar Impulse Efficient Solutions label from the Solar Impulse Foundation. The label was considered as one of the thousand most efficient and profitable solutions that can transition society to being economically viable while being environmentally sustainable.
Ideanomics was featured in CFO Tech Outlook as the Top 10 Artificial Intelligence Solution Providers-2019.
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