According to Research And Markets, the global agricultural tractor market is currently valued at $75 billion and poised for rapid growth.
Ideanomics (NASDAQ: IDEX) (“Ideanomics” or the “Company”) is a global company that facilitates the adoption of commercial electric vehicles and supports next-generation financial services and fintech products.
They have acquired 15% of California-based Solectrac, Inc. for the consideration of $1.3 million.
Solectrac develops, assembles and distributes 100% battery-powered electric tractors—an alternative to diesel tractors—for agriculture and utility operations.
The largest segment for agricultural tractors is the below-40HP segment, where Solectrac’s initial three models address the broad needs of the market.
Its electric tractors are specifically designed to serve the needs of community-based farms, vineyards, orchards, equestrian arenas, greenhouses, and hobby farms.
With this investment in Solectrac, Ideanomics expands its global footprint in the electric vehicle (EV) industry, specifically in the category of specialty commercial vehicles.
This investment marks its first in an existing US-based OEM, and Ideanomics will assume a seat on Solectrac’s Board of Directors.
Founded in 2012 to take electric tractors into commercial production, Solectrac was incorporated as a California Benefit Corp in 2019. It has received grants from the Indian U.S. Science and Technology Fund (IUSSTF) and the National Science Foundation (NSF).
Earlier this year, Solectrac received the World Alliance Solar Impulse Efficient Solutions label from the Solar Impulse Foundation.
The label was awarded for being one of the one thousand most efficient and profitable solutions that can transition society to being economically viable while being environmentally sustainable.
Reference- Solectrac website & PR, Clean Technica, Ideanomics Outreach, Bloomberg