VivoPower and its wholly owned subsidiary Tembo e-LV BV have entered into non-binding Heads of Terms for Arctic Trucks’ Heavy Duty Vehicle Converter for Arctic Trucks to convert and sell Tembo light electric vehicles in Norway, Sweden, Iceland and other countries. Finland.
Under the proposed agreement Arctic Trucks is committed to purchase 800 Tembo e-LV conversion kits by December 2026. The company estimates that the total value of these orders could be estimated at $58 million over the term of the proposed agreement.
The proposed agreement must be completed by 30 June 2021, unless the parties agree to an extension, and all purchase commitments will be subject to the terms set out in the final agreement.
Tembo kits turn diesel-powered Toyota Land Cruiser and Hilux vehicles into reliable electric passenger cars for use in mining and other sectors where decarbonisation is difficult, including construction and defence. Tembo e-LV products are a key component of VivoPower’s off-the-shelf zero-emission solutions for corporate decarbonisation, along with solar generation, battery storage and on-site power distribution.
This proposed agreement will be VivoPower’s third major deal to distribute electronic LV Tembo across three continents in 2021. The company previously completed a distribution deal with GB Auto Group in Australia in January and announced last week non-binding Heads of Terms with Acces Industriel Mining Inc for the distribution of electronic LV Tembo in Canada . The latest deal is expected to be finalised by the end of June.
Arctic Trucks specialises in retrofitting and refurbishing four-wheel drive vehicles for extreme conditions, particularly in the harsh polar regions.
Kevin Chin, executive chairman and CEO of VivoPower, said: “We are very pleased to be working with Arctic Trucks to expand the geographic distribution of our Tembo vehicles. Tembo e-LV electric motors are designed and built to provide decarbonisation through fleet electrification in some of the toughest and most carbon-intensive industries in the world. Arctic Trucks is no stranger to the challenges of designing vehicles to operate in harsh environments and we look forward to working with them to help mining operations and other customers in northern regions achieve zero-carbon goals that were previously thought impossible.
Under the proposed agreement, Arctic Trucks is expected to undertake to purchase kits 800 from VivoPower on schedule during the term of the agreement, purchase the same number of Land Cruisers or Hilux from Toyota, convert the vehicles to reliable electronic LVs using Tembo solutions and leave the units to customers for servicing and repair.
VivoPower and Arctic Trucks intend to finalise the proposed agreement as soon as possible, VivoPower said.
