Just a few days after filing for creditor protection in the U.S, Exro Technologies Inc. announced Tuesday it has consented to the appointment of a receiver under the Bankruptcy and Insolvency Act (Canada) in connection with a court filing expected today by its senior secured lender.

The Calgary-based power electronics company develops and manufactures equipment used in electric vehicles (EVs) and energy storage, which the company says boosts the cost effectiveness of these technologies. Despite its promise however, including a partnership with global automaker Stellantis, it has been beset by large financial losses and layoffs.

The company said in a release it agreed to the appointment of a receiver due to the application which is to be filed with the Court of King's Bench of Alberta. The filing by the lender will concern Exro and its Canadian subsidiaries DPM Technologies Inc. and Cellex Energy Inc.

Its U.S.-based subsidiaries — Exro Technologies USA, Inc., Exro Vehicle Systems, Inc., SEA Electric, Inc. and SEA Electric, LLC. — filed for creditor protection under Chapter 7 of the U.S. Bankruptcy Code on Oct. 31.

Exro's shares had been delisted from the TSX a day earlier, on Oct. 30.

Exro’s management did not issue any comment on the matter in the release.

Exro's beleaguered months

The company has been beset by poor financial performance for months, with its latest results in Q2 showing a net loss of $78.9 million on revenues of just $2.9 million. Exro attributed the struggle to slower-than-expected adoption of EVs and economic headwinds such as the tariff war between Canada and U.S. that impacted Canada’s auto sector.

In an effort to recover, Exro announced in May it received a funding commitment of up to US$30 million from a long-term institutional shareholder to continue operations and conduct a strategic review. The options in the review included selling its intellectual property, or the possibility of a merger or acquisition.

But Exro’s woes worsened through the year, starting with announcements in September the company would lay off approximately 60 workers.

Its former CEO Sue Ozdemir also left her role that month. The company is still searching for an interim chief executive. Chris Rankin, Exro's strategic advisor, was named chief restructuring officer to guide the company through the period.

Over a week later, Exro announced it would close its U.S. operations, affecting its subsidiaries including California-based SEA Electric Inc. and staff in the country. In the U.S., Exro had offices in four states, including a 15,000-square-foot regional headquarters in Mesa, Ariz.

Canada's EV supply chain players on a rocky road

Exro is not the only Canadian company in the electric transportation sector that has been badly bruised by economic uncertainty and the bumpy EV transition.

LION, an electric bus and truck maker based in Saint-Jérôme, Que., was sold to a consortium of Quebec investors in May following news of layoffs, its efforts to reduce its debt and the company seeking creditor protection.

Once a company valued at US$1.9 billion and considered a darling of the Canadian and Quebec governments’ plan to make Quebec a centre for Canada’s EV manufacturing industry, it too cited issues with slow uptake of EVs.

Also in Quebec, the Ultium CAM EV battery facility in Becancour had its opening day pushed to October 2026.

In Ontario, Honda said it was delaying its $15-billion EV plans for the province by two years. NextStar Energy announced Monday it will retool its factory in Windsor to produce batteries for energy storage projects first, not EVs as originally planned. NextStar said it was biding its time until EV sales pick up, the Financial Post reported.

However, it is not entirely bleak for Canada’s EV sector. Late last week, Norwegian company Vianode unveiled plans to develop a $2-billion synthetic graphite production facility in St. Thomas, Ont., which will supply the EV and battery supply chain.

In late October, Electra Battery Materials Corporation said it secured the funding to finish construction and commissioning of its cobalt sulphate refinery planned for Temiskaming Shores, Ont.