Austin, Texas-based Valence Technology, Inc. (NASDAQ: VLNC), a developer of lithium phosphate batteries, announced Tuesday that it has entered into a multi-year non-exclusive supply agreement with PVI, which 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 4Q09. Based on PVI projections, revenue for Valence from this supply agreement could represent approximately $3 million in fiscal 2010, the company said.
"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 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.
"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," Pierre Midrouillet, managing director of PVI said.
Valence has facilities in Nevada, China and Northern Ireland.
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.
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