Valence Technology, Inc. (Valence) has signed a three year supply agreement with Oxygen S.p.A. (Oxygen) for battery systems. These battery systems will support Oxygen's sales of its electrically powered scooters to its customers, incorporating the European postal delivery service market with its zero-emission electric-powered CargoScooter. Oxygen scooters for Europe boast Italian engineering and design and are integrated by its partner Peugeot Motorcycle (PMTC), part of the PSA Group, in France.
By 2010, Oxygen anticipates to double its supply to Swiss Post, Correos (Spain) and Poste Norge and also its other main institutional customers. Oxygen is also considering entry to the US market with the potential production to be carried out in North America.
The Oxygen Cargoscooter powered by Valence’s batteries is considerably less costly to operate and maintain than equivalent petroleum powered vehicles. It can run up to 120 kilometers on a single charge and reach a top speed of 45 km/hour while carrying cargo of up to 90 kg. The model continues to find favor with the main European private and institutional delivery companies, incorporating postal delivery, food and grocery delivery, courier services, and law enforcement.
Alastair Johnston, Valence’s vice president, worldwide sales and marketing, stated: Oxygen has set the standard for the electric delivery of post in Europe far ahead of its competitors, and we are proud to have contributed the enabling technology which has made this possible. This is another in a series of supply agreements we have signed with vehicle makers in the last 12 months as our technology has been evaluated and gained acceptance in the motive and stationary markets. These supply agreements underline our growing leadership in the automotive sector. Our development of safe energy storage solutions based on lithium iron magnesium phosphate technology is being recognized as one of the best options available by a wide range of vehicle makers as they provide eco-friendly solutions to transportation needs.
Commenting on the new contract, Antonio Croppo, chief executive officer of Oxygen, stated: Valence has been one of our core technical partners for more than three years and we have been delighted by its service and technology, hence our commitment to sign a supply agreement. We expect to grow our business significantly in the years ahead and Valence will play a key role in our growth.
Valence is a US-based manufacturer and supplier of lithium iron magnesium phosphate energy storage solutions.
Oxygen is an Italy-based developer, manufacturer, seller and distributor of environmentally friendly, technologically advanced light electric vehicles.