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Valence Technology Boosting Manufacturing Capacity for Li-Ion Packs
11 March 2008
Valence Technology, Inc. plans to increase the company’s manufacturing capacity to meet anticipated demand for its Lithium Phosphate energy storage systems. By 31 March 2009, Valence plans to have in place an expanded manufacturing capacity of $35 million to $50 million per quarter to support anticipated product sales.
As the company’s manufacturing capacity expands, Valence believes it can achieve gross margins of approximately 30% of revenue with operating profit from 17% to 20% of revenue.
Valence recently announced it had secured an agreement with Tanfield Group Plc that will result in the purchase of up to $70 million of product during the first phase of the contract to power zero emission, all-electric commercial delivery vehicles. The Valence battery systems are being installed in vans and trucks produced by Tanfield’s UK-based trading division, Smith Electric Vehicles, the world’s largest manufacturer of electric vans and trucks. (Earlier post.)
March 11, 2008 in Brief | Permalink | Comments (1) | TrackBack (0)
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With the present credit crunch and bond market, I hope that they can raise the money to do this. They have a customer, debt or equity like this used to be a slam dunk, not so much any more.
Posted by: sjc | Mar 11, 2008 12:39:03 PM
