On Monday, Romeo Power RMO announced that its merger with the special purpose acquisition company RMG Acquisition Corp RMG was approved. The company competes in the battery market powering electric vehicles.
Romeo Power CEO Lionel Selwood Jr. was a guest on Benzinga's "SPACs Attack" show on YouTube earlier this month, sharing a look at his company and the future of electric vehicles.
SPAC Process: The average IPO takes 12 to 18 months to complete, as opposed to four to five months, according to Selwood.
“All SPACs not created equally,” he told Benzinga.
The CEO said the energy connections that RMG Acquisition brings will be beneficial going forward.
About Romeo Power: Romeo Power takes an active lead in the electrification of vehicles.
“We take cutting edge cells and use our proprietary design line,” Selwood said, adding that it leads to market-leading battery technology.
“We’re like the Nvidia or Arm Holding inside. We’re literally the nucleus of electrification.”
The goal of Romeo Power is to make green energy accessible around the world and give customers products they can stand behind, the CEO said.
Romeo Power is an “electrification ETF” of sorts, he said, as investors get exposure to the entire electric vehicle market.
A shift to electric vehicles will be a major theme for the market from 2020 to 2030, Selwood said.
“This is the electrification decade.”
Romeo Power is also working on a recycling business with The Heritage Group. The company will make announcements in 2021 about its locations and partners, Selwood told Benzinga.
Related Link: Founded By Tesla, SpaceX Engineers, Battery Maker Romeo Power Finds SPAC
Romeo Power's Partnerships: BorgWarner Inc. BWA is an investor and partner in Romeo Power.
“They help with optimizing manufacturing,” Selwood said.
The partnership with BorgWarner helps Romeo with production and lowering costs, he said, adding that Romeo could see more competitive prices as a result.
With its acquisition of Delphi and partnership with Romeo, Selwood said BorgWarner could be attractive to land deals in the electrification segment.
Waste service provider Republic Services RSG is also an investor and partner in Romeo Power.
“[We're] very excited about Republic Services,” he said.
Republic increased its investment in Romeo as part of the SPAC deal.
“They have 16,000 trucks that need to be electrified,” Selwood said.
Romeo has a goal of landing deals for some or all of the Republic Services electric trucks in the future.
A deal with The Heritage Group will also see Romeo supply batteries for “500 vehicles no matter the OEM,” the CEO said.
Romeo Power is in the driver's seat with deals like this, Selwood said.
“We build partnerships up and down the value chain.”
Romeo Power's Financials: Romeo Power updated its guidance after a deal was signed with Lion Electric, going public via SPAC Northern Genesis Acquisition NGA. The company has $544 million in contracted revenue, Selwood said.
The company has $2.2 billion in advanced negotiations, he said.
If Romeo Power can get to its goal of 500 miles on a single charge, Selwood said it will lead to bigger orders in the Class 8 market.
RMG Price Action: Shares of RMG Acquisition were down 16.97% to $26.52 at last check Tuesday. Shares have traded as high as $38.90 in 2020.
Disclosure: Author is long shares NGA.
Watch the full interview with Benzinga and Lionel Selwood Jr. here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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