Proterra Inc. will present batteries for electrical transit vans that Lightning eMotors is constructing to fulfill rising demand from firms seeking to electrify their fleets, the business electrical automobile startups mentioned on Thursday.

Proterra and Lightning eMotors, each slated to go public through reverse mergers with particular function acquisition firms, didn’t disclose monetary particulars of the settlement.

SPACs are shell firms that increase cash by way of an IPO of its shares to take one other firm public inside two years.

Lightning eMotors, which has merged with GigCapital3 Inc. in a deal valued at $823 million, mentioned the primary transit vans with Proterra batteries are anticipated to be delivered to clients later this yr.

The Colorado-based firm mentioned it goals to broaden its annual manufacturing capability to three,000 autos this yr, up from 1,000 presently. It buys the chassis of supply and passenger vans, buses and vehicles from firms together with Ford Motors Co. and Basic Motors, which it then turns into electrical fashions and equips with its personal know-how.

Proterra in January introduced a merger with ArcLight Clear Transition Corp. in a deal valued at $1.6 billion.

The California-based firm gives electrical buses and college buses to public transit businesses, cities and college districts. It additionally sells batteries and charging infrastructure to fleet managers.

Proterra and Lightning eMotors are a part of a spread of economic EV makers, together with Rivian, Fisker Inc. and Nikola Corp., searching for to construct on the success of Tesla Inc.

The business has been increasing rapidly at a time of rising curiosity from supply fleet operators together with United Parcel Service Inc. and Amazon.com Inc. Transit businesses have additionally been seeking to electrify fleets in response to regulatory stress and in an effort to cut back greenhouse fuel emissions.