BYD could produce its electric bus in Ontario, as well.

After years of repeated delays, Chinese battery-car maker BYD still hasn’t been able to plug into the U.S. market – but it’s getting closer.

The City of Windsor, Ontario has signed a letter of intent to purchase up to 10 BYD 40-foot electric buses for the community’s transit services in 2012 It will become the first City in North America to launch long-range, all-electric buses.

The agreement also opens talks to bring manufacturing of BYD buses to the Ontario region in the near future. Transit Windsor has the unique distinction of running in Canada as well as in Detroit, making this launch one that serves on both sides of the U.S.-Canadian border.

Stella Li, President of BYD Motors and Senior Vice President of BYD Ltd stated, “BYD has been delighted to see Windsor’s leadership, especially that of Mayor Eddie Francis and his Transit and Enwin Utilities team members. They truly have an understanding of the responsibility of government to drive not only economic recovery of our cities and nations, but to do so while not harming the environment.”

The BYD Iron-Phosphate batteries – one version of lithium-ion technology — used in these electric buses are the only rechargeable battery systems that contain no heavy metals, toxic electrolytes or use caustic materials in their production, the Chinese maker claims. This makes the BYD batteries the most environmentally friendly ones available on the market, according to the China-based company

Short for “Build Your Dreams,” BYD is one of the largest cellphone battery companies in the world, but has branched out into making battery-driven vehicles.  It has been promising to launch sales of various plug-in hybrid and battery-electric vehicles in the U.S.  But those efforts have repeatedly been delayed.

Nonetheless, at last month’s Beijing Motor Show an official with the company – partially owned by U.S. mega-investor Warren Buffett – insisted that an American launch will come “soon.”  BYD has already set up its U.S. headquarters in downtown Los Angeles.

But the launch of the Windsor fleet suggests the maker has other options than just passenger cars in mind.

BYD and Enwin are working towards having a master plan to repurpose the Windsor bus batteries into fixed Energy Storage Stations when the buses retire after 12 to 15 years.

Windsor Mayor Eddie Francis stated, “One of our primary goals was to position Windsor among the first cities in North America to pioneer the efficient use of electric buses within its public transit authority and
to establish Windsor as a hub for the development, manufacture and commercialization of energy products including electric buses.”

He said BYD is in the process of completing certification testing in North America this year with further plans for fleet sales and deliveries after the first Windsor bus deliveries. BYD’s all-electric vehicles in commercial fleets have traveled over 10 million miles over the last two years (as of Q1-2012), showing that their bus technology is quite mature. BYD has delivered over 300 all-electric buses worldwide and claims orders for over 1,300 more in 2012, making it the largest electric bus manufacturer in the world.

Paul A. Eisenstein contributed to this report.

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