Cepton Secures $10M Contract with Koito for Near-Range Lidar Development

Cepton Inc. signs a $10 million engineering contract with Koito Manufacturing to develop near-range lidar technology for a major global OEM program. The partnership aims to support the development of Level 4 autonomous vehicles.

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Bijay Laxmi
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Cepton Secures $10M Contract with Koito for Near-Range Lidar Development

Cepton Secures $10M Contract with Koito for Near-Range Lidar Development

Cepton Inc., a Silicon Valley innovator in high-performance lidar solutions, has signed a significant engineering contract with Koito Manufacturing Co. Ltd., a long-term automotive Tier 1 partner and current shareholder. The agreement, signed on May 9, 2024, is valued at $10 million and aims to support near-range lidar development for a major global OEM program.

Why this matters: This partnership has significant implications for the future of autonomous driving, as it brings together two industry leaders to develop critical technology for Level 4 autonomous vehicles. The success of this project could pave the way for widespread adoption of autonomous vehicles, leading to improved road safety and reduced traffic congestion.

Under the terms of the agreement, Koito will provide Cepton with a total of $10 million in engineering services fees for the quarter ended June 30, 2024. The contract will fuel Cepton's customer-specific product development and program execution efforts for its near-range lidar, which is planned to be deployed in the OEM program and by multiple other OEM customers to enable Level 4 autonomous driving capabilities.

Dr. Jun Pei, CEO and Co-founder of Cepton, stated, "This engagement with Koito comes at a crucial juncture as Cepton prepares to fulfill our new OEM program. We are thrilled to deepen our partnership with Koito to advance scalable lidar adoption for safety-critical automotive use cases." Operational excellence is a key focus for the partnership.

Mr. Michiaki Kato, President of Koito, added, "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, aligning with our vision of 'lighting the way for our sustainable future'."

Cepton and Koito have a shared vision of paving the way to safely deployed autonomy in the automotive industry. This partnership demonstrates Cepton's commitment to delivering high-performance lidar solutions for the automotive industry and Koito's confidence in Cepton's technology.

The $10 million Engineering Services Agreement between Cepton and Koito Manufacturing marks a significant milestone in their partnership to advance near-range lidar development for a major global OEM program. With Koito's expertise in automotive manufacturing and Cepton's innovative lidar technology, the two companies are well-positioned to enable Level 4 autonomous driving capabilities for multiple OEM customers.

Key Takeaways

  • Cepton signs $10M engineering contract with Koito Manufacturing.
  • Partnership aims to develop near-range lidar for Level 4 autonomous vehicles.
  • Koito to provide $10M in engineering services fees for Q2 2024.
  • Contract fuels Cepton's customer-specific product development and program execution.
  • Partnership paves way for widespread adoption of autonomous vehicles.