Valence will have a bit of time to prepare the U-Charge XP Energy Storage Systems for the installation since deliveries will only begin in the 4th quarter of 2009. However, since they are also supplying the batteries for the Brammo Enertia, as well as another truck electrifier, Smith Electric, their hands shouldn't be idle in the meantime. Read all the details in the press release after the jump.
[Source: Valence Technologies]
Valence Signs Supply Agreement with PVI for Lithium Phosphate Energy Storage Solutions
Leading European manufacturer of industrial vehicles to incorporate Valence as the enabling battery technology for its electric vehicle platforms
AUSTIN, Texas (December 16, 2008) – Valence Technology, Inc. (NASDAQ: VLNC), an international developer of safe lithium phosphate energy storage solutions, announced today that it has entered into a multi-year non-exclusive supply agreement with PVI for Valence's U-Charge® XP Energy Storage Systems. PVI develops and manufactures commercial electric vehicles including electric buses under the GEPEBUS brand and trucks in partnership with Renault Trucks.
Under the terms of the supply agreement, Valence will provide lithium phosphate battery systems and engineering support to power four commercial EV platforms. Valence will begin shipments to PVI in the fourth quarter of fiscal 2009. Based on PVI projections, revenue for Valence from this supply agreement could represent approximately $3 million in fiscal 2010.
"This is a major milestone in our company's history," said Alastair Johnson, vice president, worldwide sales and marketing for Valence. "Since this represents our first supply agreement with a major automotive OEM supplier, we are delighted to be associated with PVI, especially given their work with leading companies such as Renault Trucks. PVI has a long and successful track record of developing innovative commercial vehicles. This agreement speaks to the value that a vehicle developer such as PVI places on Valence's safe battery chemistry, proven production capacity and technical vehicle integration support."
PVI and Renault Trucks recently announced an agreement to develop concept trucks and demonstrators of light commercial EV vehicles including an all-electric version of the Maxity. The first demonstrator will be powered by Valence lithium phosphate batteries. The all-electric Maxity represents a significant advancement of how goods can be transported in urban environments with zero emissions.
"This is an exciting time for PVI with a number of significant projects in our pipeline," said Pierre Midrouillet, managing director of PVI. "The supply agreement with Valence is critical because the battery is the enabling technology for our electric platforms. Valence's chemistry provides both safety and long life not found in other lithium-ion batteries. After extensive testing and qualification we have been impressed by Valence's lithium phosphate technology and system integration support. We will be incorporating Valence solutions not only into the all-electric Maxity concept truck, but also into a number of our other EV projects."
PVI joins a diverse group of nearly 100 companies that are actively testing or have already implemented Valence's patented energy storage solutions. Valence's technology powers a variety of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) including cars, buses, trucks, scooters and motorbikes. With over 400 international patents, Valence holds an extensive domestic and worldwide IP portfolio for phosphate cathode materials, the critical technology pathway for next generation energy storage. This extensive portfolio includes the important categories of Lithium Iron Magnesium Phosphate along with next generation materials Lithium Vanadium-based Phosphate (LVP) and Lithium Vanadium-based Fluorophosphates (LVPF). The patents also extend to Valence's innovative single-step preparative method, known as the Carbothermal Reduction (CTR) process, a key step for large scale, low cost manufacturing.
About Valence Technology, Inc.
Valence Technology is an international leader in the development of lithium phosphate energy storage solutions. The company has redefined lithium battery technology and performance by marketing the industry's first safe, reliable and rechargeable lithium phosphate battery. Founded in 1989, Valence today offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio. Headquartered in Austin, Texas, Valence has facilities in Nevada, China and Northern Ireland. Valence is traded on the NASDAQ Capital Market under the ticker symbol VLNC. For more information, visit www.valence.com.
PVI designs and manufactures trucks for specialized applications in small and medium sized series. The company produces 400 to 500 vehicles a year and employs a staff of 200 at its plant in Gretz, France (Seine-et-Marne). PVI is a Renault Trucks partner for alternative fuel technologies in trucks, such as CNG or full electric drivelines. PVI also develops electric buses, sold under its division brand "GEPEBUS". For more information, visit www.pvi.biz.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results, including realization of any revenues from the PVI supply agreement, may vary substantially from these forward-looking statements as a result of a variety of factors. The risk factors that could affect actual results are discussed in our periodic reports filed with the Securities and Exchange Commission, including our Report on Form 10-K for the year ended March 31, 2008, and the reader is directed to these statements for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements.