07:01 AM EDT, 03/11/2024 (MT Newswires) -- Westport Fuel Systems Inc. ( WPRT ) , a supplier of advanced alternative fuel delivery systems and components for the global transportation industry, said Monday that it has signed an investment agreement to set up a joint venture with Volvo Group to accelerate the commercialization and global adoption of Westport's HPDI fuel system technology for long-haul and off-road applications.

The JV is expected to become operational following the formal closing which is currently expected to occur in the second quarter.

Westport will contribute certain HPDI assets and opportunities, including related fixed assets, intellectual property, and business, into the JV.

Volvo Group will purchase a 45% interest in the JV for about US$28 million, payable upon closing, plus up to an additional US$45 million as an earn-out depending on the subsequent performance of the JV.

The company's stock, which rose 1.1% in Canada on Friday, jumped 4.5% in premarket US trading on Monday.