- Union Pacific Corp (NYSE:UNP) plans to purchase 20 battery-electric locomotives for testing in yard operations. The company expects the combined purchases and upgrades to yard infrastructure to exceed $100 million.
- The railroad will purchase the locomotives from Progress Rail, a Caterpillar Inc. (NYSE:CAT) company, and Westinghouse Air Brake Technologies Corp (NYSE:WAB) (Wabtec).
- Union Pacific anticipates the first units to arrive on-site in late 2023, with complete delivery by late 2024. The locomotives will be used in rail yards in California and Nebraska.
- Union Pacific Railroad has ordered 10 FLXdrive battery-electric locomotives from Wabtec. The ~2.5-MWh locomotives are powered solely by 7,000 battery cells, providing Union Pacific with a zero-emission solution for its yard operations.
- The 10 FLXdrives will enable the railroad to eliminate 4,000 tons of carbon annually from its rail yards. Wabtec will manufacture the new locomotives in the U.S.
- Caterpillar will manufacture the locomotives under this order in Muncie, Indiana.
- Price Action: UNP shares are trading lower by 0.23% at $244.03, WAB by 0.24% at $87.10, and CAT down by 6.16% at $199.12 on the last check Friday.
