Valence Technology, Wrightbus Sign Multi-Year Li-ion Battery Supply Agreement

9 September 2010

Valence Technology, Inc. has signed a multi-year supply agreement with Wrightbus, the United Kingdom’s leading independent supplier of hybrid buses for public transportation systems. Building on a relationship between the parties since 2005, this agreement establishes Valence Technology as the battery supplier of choice for Wrightbus’ future hybrid product range.

With multiple Valence-powered Wrightbus hybrid buses already on roads in the UK and Ireland, this new agreement secures the relationship between the two companies through 2016. Valence expects this initial contract to generate between $19 million to $24 million in battery sales over the six-year term of the agreement, subject to market demand.

The Valence product features a 600-Volt Valence Technology lithium phosphate battery system that powers the electric drivetrain. The battery system, in conjunction with the efficiencies of the Siemens ELFA drive, enables these buses to demonstrate a more than 35% reduction in emissions, as well as more than a 35% increase in fuel efficiency versus even the most efficient diesel powered buses.