Wrightbus’s hybrid buses will use Valence technology’s proprietary 600V lithium phosphate battery system for powering the electric drivetrain that can be recharged through an on-board diesel generator or regenerative braking while in transit.

The use of the battery system, in conjunction with the efficiencies of the Siemens ELFA drive, is expected to enable the Wrightbus hybrid buses to reduce emissions and increase fuel efficiency by more than 35%.

Valence expects this new contract, which extends through 2016, to generate between $19m to $24m in battery sales over the six-year term of the agreement, subject to market demand.

Valence Technology president and CEO Robert Kanode said that fleet manufacturers, like Wrightbus, are choosing Valence Technology to help meet their evolving customer needs and requirements for lower emission vehicles.

“Valence’s selection as a key supplier to Wrightbus speaks to our product’s performance as well as market acceptance of our advanced energy solutions,” Kanode said.