HTT claims that using passive magnetically induced levitation will be cheaper than the magnetic levitation system used in existing high speed trains, called Maglev, which requires costly power sources be built along the track. The company also says that tests run at Lawrence Livermore confirm the technology will make their pods much safer than current high speed trains.

“Levitation occurs purely through movement, therefore if any type of power failure occurs, [magnetically induced] Hyperloop pods would continue to levitate and only after reaching minimal speeds touch the ground,” HTT COO Bibop Gresta said in a statement.

HTT has licensed the technology, which is called Inductrack. Plans to make the Hyperloop a reality by 2020 are already underway, according to the company’s CEO, Dirk Ahlborn. In March, Ahlborn said HTT will likely build its first system in Slovakia, due to attractive government policies in the country, but that the company’s ultimate goal is to build a track between Los Angeles and San Francisco.

HTT’s announcement heightens the stakes in the Hyperloop race. Hyperloop Tech, one of HTT’s competitors, plans to make what it calls “big announcements” later today (May 10), according to the company’s Twitter account.

Correction: An earlier version of this story incorrectly stated that HTT’s technology differed from Musk’s original proposal in that it required power stations be built along the track.

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