Shares of Ouster Inc (NASDAQ:OUST) jumped 17.2% on Monday after the lidar specialist and Benchmark Electronics Inc (NYSE:BHE) confirmed an expansion of their manufacturing partnership aimed at commercial-scale production of Ouster’s Rev8 OS sensor family.
The revised agreement is intended to enable high-volume manufacturing of Rev8 lidar sensors for a range of end markets, including industrial users, robotics, automotive programs and smart infrastructure applications. Benchmark, which has been described as Ouster’s strategic manufacturing partner, will continue to scale production of the company’s sensing technology under the broadened arrangement.
Key elements of the manufacturing framework include a highly automated production line configured around the Rev8 architecture and designed to support a ramp to commercial volume. The announcement stated that Benchmark’s manufacturing capacity exceeds 100,000 units per year.
According to the company announcement, the Rev8 sensor family was developed with low-cost, high-volume production in mind, and the product line is backed by a planned 10-year production life.
Benchmark operates 20 facilities across eight countries, including sites in the United States and Europe. That global network, the companies said, provides standardized manufacturing processes and multi-site production capabilities to support future capacity expansion as customer demand grows.
"Benchmark has been a foundational partner in Ouster’s growth story and the natural fit to scale manufacturing for our breakthrough Rev8 sensors," said Darien Spencer, Chief Operating Officer at Ouster.
David Moezidis, President and Chief Executive Officer at Benchmark, said the company is positioned to scale the complex microelectronics and automated optical assembly required for the technology.
The expanded partnership is intended to position Ouster to deliver lidar sensors at higher volumes to meet customer programs across its target markets.
Market data included with the announcement showed differing real-time snapshots: a headline market readout displayed OUST+16.06% and BHE+0.59%. Separately, the release noted that Benchmark Electronics stock ticked up 1.7% following the announcement.
Sectors impacted - Industrial manufacturing, robotics, automotive supply chains and smart infrastructure deployments are the primary sectors named for Rev8 deployment and potential volume production.