Union Pacific to Purchase 10 Caterpillar Battery-Electric Locomotives

Investing.com — Union Pacific Company (NYSE:) mentioned it might purchase 10 battery-electric locomotives from Progress Rail, an organization owned by Caterpillar (NYSE:). 

Caterpillar mentioned the acquisition is a part of essentially the most vital funding in battery-electric know-how by a U.S. Class I railroad.

Caterpillar shares are down over 6%, whereas Union Pacific is buying and selling simply 0.04% under Thursday’s shut. 

The locomotives — manufactured in Muncie, Indiana — will likely be examined in rail yards in California and Nebraska to establish their capabilities and challenges for broader deployment.

The primary models will likely be delivered to Union Pacific in late 2023, with the deal anticipated to be accomplished in early 2024.

“These investments will contribute to additional growing this vital know-how and offering industry-wide advantages,” mentioned Union Pacific Chairman, President and CEO, Lance Fritz.