Cepton signs engineering services agreement with KOITO MANUFACTURING
Cepton, Inc. (Nasdaq: CPTN), a pioneering Silicon Valley firm known for its high-performance lidar solutions, has entered into a pivotal Engineering Services Agreement with its long-term Tier 1 automotive partner and current shareholder, KOITO MANUFACTURING CO., LTD. (TSE: 7276). Announced on May 9, 2024, this agreement involves Koito providing Cepton with engineering services valued at $10 million for the quarter ending June 30, 2024. This strategic collaboration is set to bolster a major global OEM program that both companies have recently clinched, signaling a significant advancement in automotive lidar applications.
Enhancing Global OEM Programs
The agreement underscores a collaborative effort between Cepton and Koito to propel customer-specific product development and program execution for Cepton’s near-range lidar technology. This technology is critical for enabling Level 4 autonomous driving capabilities, applicable to both on-road and off-road vehicles. The funding will specifically support Cepton’s contributions to an unnamed major OEM’s initiatives, showcasing the company’s continued impact on the automotive sector.
Cepton, Inc. signs new $10 million engineering services agreement with KOITO MANUFACTURING to enhance lidar solutions for autonomous driving.
Leadership Insights on the Collaboration
Dr. Jun Pei, CEO and Co-founder of Cepton, expressed enthusiasm about the partnership’s timing and potential. “This engagement with Koito comes at a crucial juncture as Cepton prepares to fulfill our new OEM program,” stated Dr. Pei. “We are thrilled to deepen our partnership with Koito to advance scalable lidar adoption for safety-critical automotive use cases.”
Echoing this sentiment, Mr. Michiaki Kato, President of Koito, highlighted the mutual benefits of the collaboration. “The Agreement not only reaffirms Koito’s confidence in Cepton’s innovative lidar solutions but also underscores Koito’s unwavering commitment to industrializing cutting-edge technologies that are poised to reshape the future of mobility,” said Mr. Kato. He emphasized Koito’s vision of ‘lighting the way for our sustainable future,’ aligning perfectly with the technological advancements pursued by both entities.
Cepton’s Growing Influence and Reach
Founded in 2016 by industry veterans, Cepton is committed to the mass market commercialization of high-quality, high-performance lidar solutions. With headquarters in San Jose, CA, and a significant presence in Troy, MI, and Germany, Cepton continues to support its global automotive customers effectively. This new deal with Koito not only reinforces Cepton’s innovative edge but also its strategic approach to fostering long-term, value-driven partnerships.
This new $10 million agreement between Cepton, Inc. and KOITO MANUFACTURING CO., LTD. is set to enhance the development of advanced lidar solutions for the automotive industry, marking a significant step forward in the journey towards autonomous vehicle technologies.