Additionally, the company revealed it has secured $38 million in new funding, increasing its total financial backing to approximately $100 million.

“Achieving Federal Railroad Administration (FRA) approval and successfully closing our Series B funding round are significant steps for Parallel Systems,” said Matt Soule, the company’s founder and CEO, in a press release. “With our strategic partnerships in the rail sector, we are now ready to fully commercialize our battery-electric rail system, starting with the FRA-approved initiative in Georgia.”

In January, the FRA granted approval for a testing program in collaboration with Georgia Central and Heart of Georgia Railroad, allowing Parallel to test its self-propelled intermodal flatcars. However, the company had not previously disclosed a specific timeline for the testing to commence.

The testing program will unfold in seven phases, beginning with a 2-mile stretch on the Heart of Georgia Railroad, which will be isolated from the main network. The tests will gradually expand to include platoon operations of the railcars, carrying loaded containers over a 160-mile route across the two railroads.

The latest round of funding is intended to accelerate the commercialization of the project with railroad partners in both the U.S. and Australia, where the product has also been demonstrated.

Parallel Systems has reported a backlog of over 300 autonomous railcars ordered by leading railroads and anticipates launching commercial operations by 2026. The company is currently ramping up production of its Generation 3 equipment and associated autonomy software for train control systems, and has collaborated with Union Pacific to ensure compatibility with positive train control technology.