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June 2021

News VivoPower

VivoPower announces proposed $58M Nordic distribution deal

VivoPower and its wholly-owned subsidiary, Tembo e-LV B.V., have entered into a non-binding Heads of Terms with leading ruggedised vehicle converter Arctic Trucks for Arctic Trucks to convert and distribute Tembo electric light vehicles in Norway, Sweden, Iceland and Finland.

Under the proposed agreement, Arctic Trucks would commit to purchase 800 Tembo e-LV conversion kits through December 2026. Based upon the company’s estimates, these orders could be worth an estimated US$58m in total value over the life of the proposed agreement. The proposed agreement must be finalised prior to June 30, 2021, unless the parties agree to an extension, and all purchase commitments would be subject to the terms and conditions set forth in the final agreement.

The Tembo kits transform diesel-powered Toyota Land Cruiser and Hilux vehicles into ruggedised e-LVs for use in mining and other hard-to-decarbonise sectors, including construction and defence. Alongside solar generation, battery storage and on-site power distribution, Tembo e-LV products are a key component of VivoPower’s turnkey net-zero solutions for corporate decarbonisation.

This proposed agreement would mark VivoPower’s third major distribution deal in 2021 for Tembo e-LVs across three continents and would continue to advance the company’s aim to build a global Tembo distribution network before the end of this year. The company previously completed a distribution deal with GB Auto Group in Australia in January, and announced a non-binding Heads of Terms with Acces Industriel Mining Inc. for distribution of Tembo e-LVs in Canada last week. The latter deal is expected to be formalised before the end of June.

Arctic Trucks specialises in the re-engineering and conversion of four-wheel drive vehicles for extreme conditions, particularly in the harsh polar regions. Arctic Trucks vehicles have enabled ventures to the North Pole and erupting Icelandic volcano Eyjafjallajökull on television’s Top Gear and set the Guinness World Record for the fastest overland journey to the South Pole. Those credentials made Arctic Trucks a natural choice for a partnership to convert and distribute Tembo e-LVs designed for mining and other ruggedised applications.

Kevin Chin, Executive Chairman and CEO of VivoPower, said: “We are extremely pleased to be partnering with Arctic Trucks to expand the distribution reach of our Tembo vehicles. Tembo e-LVs are engineered and built to enable decarbonisation through fleet electrification in some of the world’s harshest and most carbon-heavy industries. Arctic Trucks are no strangers to the challenges of engineering vehicles for ruggedised environments, and we look forward to working with them to help mining and other customers in the Nordic regions achieve net-zero carbon goals previously thought impossible.”

Under the proposed agreement, it is intended that Arctic Trucks would commit to purchase the 800 kits from VivoPower as scheduled over the duration of the agreement, acquire an equal number of Land Cruisers or Hilux from Toyota, convert the vehicles to ruggedised e-LVs using the Tembo solutions, sell the units on and be retained by customers for servicing and maintenance.

VivoPower and Arctic Trucks intend to finalise the proposed agreement as soon as practicable.