The city of Cedar Park has revised its million-dollar incentives deal with Hyliion Holdings Corp. after the energy technology company underwent mass layoffs in November.
The rundown
Hyliion, which is headquartered in Cedar Park, announced it would lay off 67% of its workforce Nov. 8 to halt the production of its electric semitruck engines and transition to electric generators.
The move left only 60 local employees, bringing the company out of compliance with Cedar Park's 2018 incentives deal, which included the promise to create over 200 local jobs.
On March 7, City Council unanimously approved a plan that will require Hyliion to immediately pay $745,000 back to the city of the $1.15 million it received prior to the layoffs.
The amended incentives deal will allow them to receive up to $1.1 million based on new job creation and capital investment targets over the next six years.
The specifics
The incentives are expected to deliver a net benefit of $1.6 million to the city in 10 years, said Scott Smith, Cedar Park's assistant director of economic development, at a Feb. 26 meeting.
Smith outlined the following commitments expected from Hyliion by 2029:
- 60 new local jobs
- Average salary of $90,000 for local jobs
- $80 million in capital investment at the Cedar Park site
Some background
Due to the slowing growth of the electric vehicle industry, Hyliion began to pivot away from their chargeable truck engines and acquired the Karno generator unit from General Electric in the fall of 2022.
The standalone electric generator has a more versatile use case, with the ability to power commercial trucks externally, as well as entire buildings, Smith said.
“Our focus on Karno aligns with the growing demand for electricity. With commercial deliveries planned for the upcoming year, the Karno generator offers a more capital-efficient path to market,” CEO and founder Thomas Healy said in a Nov. 8 release.
Quote of note
"It's not easy to be a pioneer, to be on the cutting edge of innovation. Sometimes that requires a pivot, and I think that requires us to be adaptable in supporting those businesses that are looking to do exciting things here in Cedar Park," said Petri Darby, a board member of the city's Economic Development Corporation, at a Feb. 26 meeting. "I'm excited they found a new business model that they expect to work for them."
