Envirotech Vehicles Inc. – The Desk of the CEO
Many of you have been closely following our progress and know that it’s been a very busy few months since I last updated you. Our business isn’t always linear in its growth, but recently I took a moment to reflect on the tremendous activity that we’ve been seeing, and I want to share some of our noteworthy highlights and accomplishments.
As I’ve mentioned previously and you can gather from just watching the news; there are many federal and state incentive programs underway to encourage the shift to EV use, and Envirotech is ideally positioned to capitalize on this transition. President Biden not only signed a “Buy America” Executive Order in January 2021 that mandates the replacement of almost half a million government vehicles with U.S.-manufactured electric vehicles, the administration followed that with the American Jobs Plan, published in March, which includes point of sale rebates and tax incentives to buy American-made EVs. In addition to these aggressive federal commitments, many states are establishing timelines to eliminate gasoline-powered vehicles. California has identified 2030 as its goal year to mandate that 100% of all new vehicles sold be zero-emission and New York also has a similar law in place that establishing 2035 as their target year for this change.
These legislative commitments are great for the environment and very favorable to our business. Envirotech is well positioned to help our customers comply with these zero-emission mandates, because we have a turnkey inventory of vehicles that are already manufactured and ready for our customers. For example, we’re seeing a great deal of sales activity related to the NJ Zip voucher program, which is a New Jersey program that supports businesses and institutions purchasing new, zero-emission vehicles operating in the greater Newark and greater Camden areas by offering up to $100,000 towards the purchase of battery-electric vehicles. As of the date of this letter, under this program that we were approved for in June 2021, Envirotech Vehicles’ customers have already received voucher grants toward the purchase of 13 vehicles with a total value of $1,229,999.
In addition to our focus on providing the best purpose-built EVs, we also look for innovative ways to differentiate ourselves in the growing EV space. To that end, we’re very excited to have recently announced an LOI to acquire battery manufacturer ProGreens New Energy Technology Co. LTD. This acquisition is transformational to our Company because it uniquely positions us as one of the few EV companies with battery manufacturing capabilities. In addition to providing batteries for our vehicles as we scale, ProGreens also makes state-of-the-art energy storage systems (ESS). ESS is a rapidly growing multi-billion-dollar market with applications including EV charging stations or energy backup for commercial and residential solar, and we believe this will be an exciting contiguous market opportunity for us.
We continue to expand our reach in the marketplace through strategic Factory Authorized Representative (FAR) agreements and recently signed agreements with Shine Solar and Hoglund Bus Co. Shine Solar is a well-known and respected provider of solar energy equipment in cities across Arkansas, Missouri, Oklahoma and Tennessee, with a customer base focused on green energy solutions – an ideal fit for our environmentally friendly fleet trucks. Minnesota-based Hoglund sells and leases a broad variety of buses, and they are the first company we’ve partnered with in the Midwest, which we believe will help us expand our product recognition and reach in this region of the U.S. Our FAR partnerships are a key part of our growth strategy, and we continue to selectively sign deals like this to support our sales and customer service initiatives while capitalizing on the rapidly growing EV market.
We remain energized by the growing focus and enthusiasm around the transition to electric vehicles. It is gratifying to see ongoing legislative efforts to incentivize fleet operators to make the change to zero-emission transportation. There are many business owners who recognize the importance of protecting our environment, but also need to recognize economic benefits in order to ensure that the switch to EVs makes sense for their business. State and federal programs are easing the path to near-term change. Envirotech stands ready with our inventory of efficient, reliable, best-in-class light-to heavy-duty electric vehicles to capitalize on the tremendous opportunities we’re seeing in the marketplace.
Thank you for your continued support and belief in Envirotech.
Chief Executive Officer