Luminar Technologies, Inc. ( LAZR ) has partnered with Caterpillar, Inc. ( CAT ) to bring LiDAR technology to the next generation of autonomous solutions.

The company’s shares are trading higher following the announcement.

LiDAR, or Light Detection and Ranging, is crucial for enabling precise navigation and obstacle detection in autonomous machines by using lasers to scan the environment and measure nearby objects with incredible accuracy.

The collaboration will first focus on Caterpillar’s Cat Command for hauling, designed to improve operations in quarry and aggregate settings.

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The autonomous Cat off-highway trucks will be equipped with two Iris LiDAR sensors, integrated into a system tailored specifically for Caterpillar’s needs.

Caterpillar ( CAT ) already boasts autonomous trucks operating across three continents, covering over 334 million kilometers and moving more than 9.3 billion tonnes of material.

This partnership is set to drive the next industrial revolution by enhancing safety, productivity, and efficiency in heavy-duty industries.

Luminar ( LAZR ) CEO Austin Russell highlighted the significance of the partnership, stating it will not only improve safety but also increase profitability for Caterpillar’s global customers. Together, both companies are poised to transform the future of automation.

“Now that Luminar ( LAZR ) has successfully executed for automotive series production, we’re able to branch out to adjacent markets with a shared mission,” Russell added.

According to Benzinga Pro, LAZR stock has lost over 75% in the past year.

Price Action: LAZR shares are trading higher by 17.7% to $6.66 at last check Thursday.

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