HONG KONG, June 21, 2022 /PRNewswire/ -- Quantum Solutions (Quantum), an electric vehicle (EV) developer listed on the Tokyo Stock Exchange, announced that it has signed a letter of intent with China's Singulato Motors (Shanghai) Ltd. to collaborate on the development and production of electric vehicles as Quantum shifts its focus to providing affordable mobility solutions necessary for the global transition to a net carbon-zero society.
The collaboration, which is subject to approval by Quantum's board of directors after a period of due diligence, will give Quantum access to Singulato's SUV and small car EV platform technology, which includes a market-leading smart car networking system. In addition, Quantum will expand its access to China, the world's largest EV market.
Simon Zhang, Quantum's chief executive who manages the company's overseas platform, said, "This is an important collaboration because this will strengthen our research and development (R&D) and highlights the potential for cooperation between Japan and China in the expanding market for EVs."
The agreement reached with Singulato marks the latest step Quantum has taken in building a global EV production network with cutting-edge intellectual property needed to fulfil the company's mission of meeting the growing demand for low-cost EVs.
Since April, Quantum has outsourced the production of the FOMM ONE, one of the world's smallest four-seater EV models, to its joint-venture partner FOMM Co., Ltd. (FOMM) in Thailand. Quantum is also shifting production to original equipment manufacturers (OEMs) in China in order to lower manufacturing costs and raise profitability, which is the reason why Quantum signed the letter of intent with Singulato.
Quantum and Singulato are two rare examples of dedicated EV companies that share a common Japanese DNA, Zhang said.
In January Quantum acquired the rights to produce and sell the FOMM ONE from its joint-venture partner FOMM in some regions. FOMM ONE utilizes patented technology invented by engineers who were involved in EV development at Japan's Araco Co., Ltd. (currently Toyota Auto Body Co., Ltd.).
Several Chinese and Japanese engineers currently work at Singulato, and its small car EV model iC3 uses platform technology licensed from a major Japanese auto maker. Singulato develops and manufactures EVs, but it also develops autonomous and artificial intelligence-powered driving systems, big data analysis for networked EVs and other technology necessary for the upcoming generation of new energy vehicles. In addition, one of Singulato's shareholders is a major Japanese trading company.
In March Quantum Automotive Ltd., a wholly-owned subsidiary of Quantum, and Chinese EV maker Jiangsu Duke Electric Motor Co., Ltd. (Duke) entered an agreement to use Duke's technology to manufacture EVs for Asia and Latin America, which is another example of Quantum's ability to form partnerships within China's EV sector.
About Quantum Solutions Limited (2338.T)
Quantum Solutions Co., Ltd. (TSE Standard Section Code No. 2338) is a company headquartered in Kudankita, Chiyoda-ku, Tokyo, with a capital of 2.7 billion yen, mainly engaged in content development and contract development of distribution software.
About FOMM Corporation
FOMM is an R&D and design-oriented mobility company specializing in planning and developing compact mobility using innovative designs and technologies. FOMM has been designated as the OEM for the FOMM ONE EV. The company is based in Kanagawa Prefecture and was established in 2013 by Hideo Tsurumaki, who is a veteran engineer from Suzuki Motor Corp. and Araco Co., Ltd.
