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Axeon Closes US$33.6M Li-Ion Supply Contract for EVs

Lithium-ion battery supplier Axeon Holdings plc has closed a £17.3 million (US$33.6 million) contract to supply a minimum of 1,000 lithium-ion battery packs to Glasgow based Allied Vehicles Ltd. to power a range of zero-emission vehicles for Allied’s Zev Ltd. subsidiary.

Allied is working with Peugeot to provide a 3.5 tonne delivery vehicle based on the Peugeot Boxer, while the Peugeot Expert body shell provides options for a 3 tonne delivery vehicle, 8 seat minibus, and a taxi. Allied is also developing an all electric 16 seat low floor city bus. These vehicles were shown at the recent commercial vehicles show in Birmingham.

The first delivery of batteries is scheduled for September 2008, with volume production of batteries starting at that point. Zev are currently forecasting to produce around 200 vehicles a year.

Axeon is also providing Li-ion packs to Modec. (Earlier post.)


Harvey D

This is one more good news. At about $656/KWh (2008 USD) it is much cheaper than previous Modec purchase at $704/KWh (2007 USD). Price seems to be well on its way to $500/KWh (2006 USD), if it is not there already.

Note. Due to the very quick progressive devaluation of the USD, one has to state the year and the currency to establish the real value. The price of same battery packs in Euro $$ is dropping much faster and is already much below 500 Euro/KWh.

A 16-seat electric city bus would be ideal for many applications. A streched 28-32-seat version would make an ideal school bus. That would be a welcomed vehicles.



One of the direct results of the dollar drop will be it'll become cheaper to manufacture the batteries we need domestically rather than import them. There's a lithium ion startup in Florida, for instance, already producing millions per year. We'll also need to bring up our domestic sources of lithium, since foreign sources will be relatively more expensive.


The dropping dollar is indeed creating a lot of impacts. My manager explained to me this week that the dollar situation has currently halted our engineering outsourcing program. With the recent wave of price increases, customers are becoming more price sensitive in everything they buy.

Harvey D


Mass producing lithium (or equivalent) battery packs in the USA is indispensable to reduce trade deficits, create new jobs and ensure availability and quality of all the units required for the transition from ICE to PHEVs and BEVs.

For US firms to be competitive, they will need access to free or very low cost capital to build new plants or convert existing empty plants and install the highly automated mass production systems required.

That means, Federal + States + Counties + Cities incentives to supply the important (huge) initial capital investment. It does not have to be outright handouts. Governments could make interest free loans and/or buy a few million++ shares.

The same will have to be done for the factories required to build the electric motors + controllers etc.

The existing car manufacturers will have their hands full with the retrofitting required to produce adapted lighter e-vehicles instead of the heavy ICE vehicles currently produced.

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