TEMBO NEXT GENERATION EUV KIT DELIVERIES HAVE COMMENCED
Tembo E-LV BV, a subsidiary of VivoPower International PLC, has announced the delivery of its next generation Electric Utility Vehicle powertrain conversion kits to Access Industrial Mining Inc in Canada. Access has previously signed a Definitive Agreement for 1,675 EUV conversion kits over five years. The kits will transform diesel-powered 4×4 LandCruiser and Hilux vehicles into ruggedized EUVs for mining and industrial applications, aligning with VivoPower's sustainable energy solutions. Access was chosen as the distribution partner due to its extensive experience with Toyota LandCruisers and active relationships with mining and industrial companies.
The announcement by VivoPower regarding the shipment of Electric Utility Vehicle (EUV) powertrain conversion kits to Access Industrial Mining Inc represents a strategic move within the sustainable energy and electric vehicle (EV) market. As companies globally are pressured by environmental regulations and social governance standards to reduce carbon footprints, the demand for electrification solutions in industrial sectors, especially mining, is expected to grow. These EUV kits, which transform diesel-powered vehicles into electric ones, align with the broader trend of transitioning towards a low-carbon economy.
Access's initial order for EUV kits, following extensive testing, indicates confidence in the product's performance and reliability. This could potentially lead to increased market demand and set a precedent for other companies in similar sectors to follow suit. The partnership between VivoPower and Access leverages Access's strong distribution network and expertise in the mining sector, which could facilitate the adoption of these kits and enhance VivoPower's market penetration in Canada.
For investors, this development could signal VivoPower's commitment to innovation and its potential for growth within the EV conversion market. It also underscores the company's ability to secure long-term agreements, such as the five-year deal with Access, which provides a predictable revenue stream and could improve investor confidence in VivoPower's business model.
The delivery of Tembo EUV conversion kits represents a significant step in addressing the environmental impact of the mining industry, which is traditionally energy-intensive and a significant contributor to greenhouse gas emissions. The electrification of utility vehicles aligns with key legislation aimed at reducing emissions and promoting sustainability. By retrofitting existing vehicles, the mining sector can decrease its carbon footprint without the immediate need for a complete overhaul of its vehicle fleet.
This approach not only supports corporate sustainability goals but also aligns with international climate agreements and domestic policies promoting clean energy transitions. Investors and stakeholders should recognize the potential regulatory advantages that companies like VivoPower may gain as governments increasingly incentivize low-emission technologies. Moreover, this could lead to enhanced corporate reputations and potentially access to green financing options, which are becoming more prevalent as part of sustainable investment strategies.
From a financial perspective, the agreement between VivoPower and Access for the supply of 1,675 EUV conversion kits over five years is a substantial commitment that suggests robust revenue projections for VivoPower. The ability to convert both new and second-hand vehicles is a cost-effective solution for mining companies, potentially leading to operational cost savings in fuel and maintenance over time. These savings could be a key driver for the adoption of EUV kits in the industry.
However, investors should consider the initial capital expenditure for the kits and the potential need for infrastructure upgrades to support an electrified fleet. The long-term benefits must be weighed against these upfront costs. Additionally, VivoPower's performance in fulfilling this contract and the operational success of the converted vehicles will be critical in evaluating the company's future financial health and its stock performance.
It's also important to monitor the scalability of VivoPower's production capabilities to meet potential increases in demand, as this could impact the company's ability to capitalize on the market opportunity and affect its profitability.
02/05/2024 - 09:15 AM
Access Industrial Mining Inc (“Access”) in Canada is the inaugural partner to receive shipment
Founded in 1998, Access is a key distributor and supplier to the Canadian mining and industrial sectors
Previously signed Definitive Agreement for 1,675 EUV conversion kits over five years
LONDON, Feb. 05, 2024 (GLOBE NEWSWIRE) -- Tembo E-LV BV (“Tembo”), a subsidiary of the Nasdaq listed B Corp, VivoPower International PLC (Nasdaq: VVPR, “VivoPower” or the “Company”), is pleased to announce today that it has begun delivery of its next generation Electric Utility Vehicle (“EUV”) powertrain conversion kits. The first delivery of kit components were made to Access Industrial Mining Inc (“Access”), Tembo’s exclusive distributor in Canada.
Following completion of Access’s successful testing program of the Tembo converted 4x4 Landcruiser in Europe in 2023, Access placed an initial order for EUV powertrain conversion kits. Further testing was then conducted across both hardware and software elements of the EUV powertrain conversion kits. This was pursuant to a definitive agreement for Access to purchase 1,675 Tembo EUV conversion kits over a period of five years.
The Tembo EUV conversion kits will transform new and second-hand diesel-powered 4×4 LandCruiser and Hilux vehicles into ruggedised EUVs that are fit for purpose for mining and other industrial applications. Tembo EUV conversion kits are a key component of VivoPower’s turnkey sustainable energy solutions, designed to help corporate customers accelerate towards their net zero carbon goals and to achieve cost savings.
Tembo selected Access as the Company’s distribution partner in Canada because of Access’s long track record and experience supplying, customizing and servicing Toyota LandCruisers, as well as its extensive and active relationships with mining and other industrial companies.
Martin Paquette, General Manager of Access, said: “We are excited to start the electrification retrofit process for our clients’ LandCruisers using Tembo’s EUV conversion kit, and thus to offer EUVs to our clients across Canada. This is a product which has been in demand for some time in the market given our clients’ broader sustainability objectives and key legislation.”
Kevin Chin, Chairman and CEO of VivoPower, said: “For Tembo, quality and safety are of paramount importance. Following a disciplined testing program over the last 12 months, we are very pleased to have begun delivery of the next generation EUV conversion kits and look forward to supporting our valued partner, Access as well as our other partners across the globe to electrify their utility vehicle fleets. In doing so, we look forward to helping them meet their commercial objectives, including in relation to sustainability goals.”
About VivoPower
VivoPower is an award-winning global sustainable energy solutions B Corporation company focused on electric solutions for customised and ruggedised fleet applications, battery and microgrids, solar and critical power technology and services. The Company’s core purpose is to provide its customers with turnkey decarbonisation solutions that enable them to move toward net-zero carbon status. VivoPower has operations and personnel in Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates.
About Tembo
Tembo electric utility vehicles (EUVs) are the premier 100% electric solution for ruggedised and/or customised applications for fleet owners in the mining, agriculture, energy utilities, defence, police, government, humanitarian, and game safari industries. Tembo provides safe, high-performance off-road and on-road electric utility vehicles that meet exacting standards of safety, reliability, and quality. Its core purpose is to provide safe and reliable electrification solutions for utility vehicle fleet owners globally, helping perpetuate useful life, reduce costs, maximise return on assets, meet ESG goals and activate the circular economy. Tembo is a subsidiary of the Nasdaq listed B Corporation, VivoPower International PLC.
About Access
Founded in 1998 in Rouyn-Noranda, Quebec, Access is Canada’s foremost dealer and customizer of Toyota and other branded vehicles to industry. Whilst its main focus is mining, it also has customers in the industrial, forestry, construction and government sectors.
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What is the name of the company that has received the delivery of EUV powertrain conversion kits?
Access Industrial Mining Inc in Canada is the inaugural partner to receive shipment.
How many EUV conversion kits has Access previously signed a Definitive Agreement for?
Access has signed a Definitive Agreement for 1,675 EUV conversion kits over five years.
What vehicles will the EUV conversion kits transform into ruggedized EUVs?
The kits will transform new and second-hand diesel-powered 4×4 LandCruiser and Hilux vehicles into ruggedized EUVs.
Why was Access chosen as the distribution partner for the EUV conversion kits?
Access was chosen due to its extensive experience with Toyota LandCruisers and active relationships with mining and industrial companies.
