Mr. Don Currie reports

HILLCREST AND EQUIPMAKE SIGN DEFINITIVE AGREEMENT TO JOINTLY DEVELOP AND LICENSE ZVS INVERTER TECHNOLOGY FOR HEAVY-DUTY ELECTRIC VEHICLES

Hillcrest Energy Technologies Ltd. has signed its first definitive commercial licensing agreement. Under a technology collaboration agreement with United Kingdom drivetrain manufacturer Equipmake Ltd., a subsidiary of Equipmake Holdings PLC, the companies will jointly develop an 800-volt traction inverter using Hillcrest's Zero Voltage Switching (ZVS) technology for heavy-duty trucks, buses and off-highway equipment. If the inverter meets agreed acceptance criteria, Equipmake will hold exclusive rights to manufacture and sell it in those markets and will pay Hillcrest a royalty on net sales. The agreement is Hillcrest's first definitive commercial licensing agreement.

Benefits of the collaboration

Heavy-duty electric vehicles run long duty cycles at high power, so the traction inverter, which converts battery power to drive the motor, has a direct effect on range, battery size and total cost of ownership. ZVS reduces both the energy lost in the inverter and the electrical noise and voltage spikes it produces. That can mean higher-efficiency, smaller filtering components and less stress on motor insulation.

In laboratory testing at the facilities of global automotive OEMs (original equipment manufacturers) and Tier 1 suppliers, Hillcrest's ZVS traction inverter achieved 99.7-per-cent peak efficiency. EMC (electromagnetic compatibility) chamber testing at a certified external laboratory showed substantially lower electromagnetic interference than conventional inverters, and bench testing reported in a peer-reviewed paper accepted for IEEE ECCE 2026 (October, 2026) showed a reduction of more than 90 per cent in motor-terminal voltage overshoot. The development program will build on these laboratory results to validate performance in heavy-duty vehicle applications.

For Equipmake, the agreement adds a differentiated capability to an established product line. Equipmake designs, manufactures and supplies electric drivetrain systems to bus and commercial vehicle customers and is developing electric drive systems for off-highway equipment. Exclusive rights would allow it to offer ZVS-integrated inverters to current and new customers in its core markets ahead of competitors.

For Hillcrest, the agreement provides a path to commercialization through a partner with engineering, manufacturing and sales capabilities already in place, without the cost of building its own. Hillcrest would earn royalties on sales and will retain all ZVS-related intellectual property.

Management commentary

"This is Hillcrest's first definitive commercial licensing agreement, and it sets out a clear, milestone-based plan for bringing ZVS to heavy-duty vehicles, where efficiency, durability and total system cost are all critical," said Don Currie, chief executive officer of Hillcrest. "Equipmake already builds and sells electric drivetrains, and partnering with Equipmake is the right way to reach this market."

"Our customers need drivetrains that are efficient, durable and cost-effective over long duty cycles. Hillcrest's ZVS technology has the potential to improve on all three. Integrating it into our inverter platform, with exclusive rights in our core markets, positions us to offer that advantage to our existing customers and to win new ones," said Ian Foley, founder and CEO of Equipmake.

Key terms:

• Development program: a milestone-based program that will begin once the parties finalize the technical specification and resource plan, which they have committed to complete within six months; the program has two prototype stages, each with defined performance criteria; if a prototype does not meet them and the shortfall is not remedied, the program may end; either party may also withdraw following delivery of the first prototype;
• Consideration: each party will contribute equitable engineering personnel, facilities and expertise; Equipmake's contribution, including dedicated engineers, test and validation facilities, powertrain integration expertise, and its commitment to market and sell licensed products, is the consideration for its exclusive licence; both parties intend to pursue government grants and other non-dilutive financing for direct program costs;
• Royalty: a percentage of net sales of licensed inverters, payable by Equipmake to Hillcrest; royalties will not commence until Equipmake begins commercial sales of licensed products; as such, no immediate royalty revenue is expected;
• Exclusivity: worldwide within the field of use during the program and for an initial six-year term after acceptance of the final prototype; exclusivity is subject to annual minimum sales targets to be agreed by the parties and renews automatically for further terms while those targets are met;
• Field of use: on-highway heavy commercial trucks (Class 6 and above), heavy-duty buses and coaches, other heavy-duty commercial vehicles, and off-highway construction, agricultural, mining and industrial equipment; passenger vehicles are excluded; Hillcrest retains all rights outside the field of use;
• Intellectual property: Hillcrest will retain all ZVS-related intellectual property, including ZVS improvements developed during the program. Equipmake will retain its existing intellectual property and its non-ZVS improvements to it.

About Hillcrest Energy Technologies Ltd.

Hillcrest Energy Technologies is a Canadian clean-technology company developing advanced power conversion technologies and digital control systems for next-generation energy applications, including AI (artificial intelligence) data centres, energy storage, microgrids and electric-vehicle powertrains. The company's proprietary ZVS technology has been independently validated at the facilities of global automotive OEMs and Tier 1 suppliers.

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