AltairNano Closes Additional Order with Phoenix Motorcars; Enters into Exclusivity Agreement and Takes 16.6% Ownership
Altair Nanotechnologies Inc. has received a $1-million purchase order for NanoSafe 35 kWh lithium-ion battery pack systems from California-based Phoenix Motorcars for delivery in February and March 2007. In addition, the company announced it has entered into a multi-year purchase and supply agreement with Phoenix under which Phoenix has projected orders for 2007 between $16 and $42 Million for up to five hundred battery pack systems.
Furthermore, in consideration for a three-year exclusivity agreement within the US, Altairnano received a 16.6% ownership in the company.
The three-year exclusivity agreement provides Phoenix with limited, exclusive use of Altairnano’s NanoSafe battery packs in four-wheel, all-electric vehicles having a gross weight up to 6,000 pounds. Altairnano’s NanoSafe battery packs manufactured for hybrid electric vehicles (HEVs) and plug-in electric vehicles (PHEVs) are excluded from the exclusivity agreement.
Depending on Phoenix’s level of demand, the entire projected order for NanoSafe battery pack systems may be shipped to Phoenix in calendar year 2007. Under the terms of the multi-year purchase and supply agreement, Phoenix will purchase all battery packs for its electric vehicles from Altairnano.
Phoenix must meet minimum battery pack purchases, annually, to maintain the limited exclusivity agreement. The minimum commitment to maintain exclusivity for 2007 would provide $16 Million in battery pack sales to Altairnano.
Altairnano’s NanoSafe 35 kWh battery pack systems enable Phoenix SUTs to meet California’s Air Resources Board Type III Zero Emission Vehicle (ZEV) standards while providing power for a driving range of 135 miles and driving speeds of up to 100 miles per hour. The NanoSafe battery pack can be recharged in less than 10 minutes at fast-charge stations.
Altair Nanotechnologies shipped ten of the 35 kWh battery packs to Phoenix on schedule at the end of December 2006. The shipment of the ten packs completed an initial $750,000 order placed by Phoenix in July 2006. (Earlier post.)
Phoenix Motorcars’ market strategy targets operators of fleet vehicles, such as public utilities, public transportation providers, and delivery services. This market presents a significant opportunity as there are more than 200,000 fleet vehicles in the State of California alone, with an increasing number of fleet operators now seeking freeway-capable, zero emission, all electric vehicles. The Phoenix SUT and SUV vehicles are the only all-electric vehicles currently on the market capable of meeting California’s Type III ZEV requirements.
The market opportunity for freeway-ready, all-electric, zero-emission vehicles is growing daily. Having a best-in-class company such as Altair Nanotechnologies as an equity owner and as a provider of safe, powerful, fast-charging battery packs, will be a major driver for our growth.—Phoenix Motorcars CEO Daniel Elliott
(A hat-tip to Joe!)