Investing.com — Union Pacific Corporation (NYSE:) said it would buy 10 battery-electric locomotives from Progress Rail, a company owned by Caterpillar (NYSE:).
Caterpillar said the purchase is part of the most significant investment in battery-electric technology by a U.S. Class I railroad.
Caterpillar shares are down over 6%, while Union Pacific is trading just 0.04% below Thursday’s close.
The locomotives — manufactured in Muncie, Indiana — will be tested in rail yards in California and Nebraska to identify their capabilities and challenges for broader deployment.
The first units will be delivered to Union Pacific in late 2023, with the deal expected to be completed in early 2024.
“These investments will contribute to further developing this important technology and providing industry-wide benefits,” said Union Pacific Chairman, President and CEO, Lance Fritz.
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