June 2024

VivoPower's Tembo Launches Full Electric Pick Up Utility Vehicle with Capital Light Global Supply Chain

Ground breaking strategic development allows Tembo to bypass capex intensive assembly process and fast track path to profitable revenues

Fully electric OEM pickup utility vehicle facilitated by establishment of world class supply chain across Asia augmented with European design and development heritage

Initial B2B orders already secured for the EU-certified OEM vehicles, which are on track for full homologation by July 2024

Tembo OEM vehicle range complements current EUV conversion kit program, offering more choice to B2B corporate fleet customers

Strategic supply chain will also materially reduce direct costs for the Tembo EUV conversion kit and Jeepney programs

The OEM program is projected to expand Tembo’s total addressable B2B market by over 100% to $203 billion

Executive Chairman of VivoPower will host a strategy and product update call on June 5, 2024

vivopower tembo pick up utility vehicle 3

The NASDAQ-listed B Corp, VivoPower has announced a major transformational strategic update today with regards to its electric vehicle subsidiary, Tembo e-LV.

Over the past 18 months, Tembo has diligently worked towards establishing a robust supply chain across Asia, including securing best-in-class partners in the Philippines, Thailand, China, and India, accelerating the ability to serve diverse markets globally.

The establishment of this supply chain has enabled Tembo to procure, evaluate, and now introduce a fully electric OEM pickup utility vehicle. The base model has a range of 330 kilometres, as well as a payload capacity of 1 tonne, and an unbraked towing capacity of 750 kilograms. The inaugural shipment of EU-certified and rigorously tested vehicles has already arrived in Australia. This initial order is being prepared for delivery to partners and customers, with full on-road homologation expected to be granted by July 2024.

The Tembo OEM program will augment the Tembo EUV conversion program, increasing choices for Tembo’s B2B customer base and target market. Depending on where a fleet customer is in their fleet replacement cycle and/or depending on their strategic requirements and total cost of ownership considerations, Tembo will now be able to offer a choice of a full electric utility vehicle or a conversion of an existing utility vehicle. This expanded offering underscores Tembo’s commitment to providing tailored solutions to meet the diverse requirements of its global customer base.

The establishment of our strategic supply chain in Asia also has profound financial implications for both VivoPower and Tembo, alleviating the necessity to procure substantial funds for capital expenditure towards assembly and production facilities. This transformation of Tembo’s business model towards a more capital-light approach not only accelerates delivery schedules and revenue streams but also fortifies the foundation for sustainable growth. Moreover, this development also delivers a positive effect on our EUV conversion and Jeepney PUV businesses, enabling significant reductions in direct costs for both programs.

More broadly, our strategic focus remains on delivering purpose-driven sustainable energy solutions to electrify B2B fleets, encompassing aftermarket solutions, charging, digital twins, software, and data analytics, aligning with evolving market dynamics and regulatory frameworks.

VivoPower’s Executive Chairman and CEO, Kevin Chin, said: “The establishment of our strategic supply chain is the culmination of 18 months of extensive engagement to build and fortify relationships with best-in-class partners across Asia. We have executed upon a ‘Pilot – Partner – Procure” strategy which materially improves our competitive pricing, significantly reduces capex requirements, and accelerates speed to market. The outcome has surpassed our expectations, so much so, that we are now in a position to bypass the traditionally most risky and capital-intensive scale-up assembly and production phase with the introduction of the Tembo OEM range. Our pre-marketing engagement with our partners and potential customers has provided us with very positive feedback and given us the confidence to accelerate the launch of the range globally. The Tembo OEM program is also B2B-focused and augments our EUV conversion business, including the Jeepney program. Both the EUV and Jeepney PUV business units will benefit from the strategic supply chain that is now in place, with a material reduction in direct costs for both. Importantly, with the European heritage of Tembo, as well as our first-class team of experienced EV engineers and executives, there is no compromise on safety, quality, and reliability. We are also cognizant that in order to be truly sustainable, our solutions need to be economically viable for our customers as well as environmentally beneficial. These transformational strategic initiatives we have executed upon will deliver on both fronts for our partners and customers alike. Furthermore, the transition to a capital light business model that accelerates our path to profitable revenues is a benefit for our shareholders.”

To read our full press release, and to keep up with all of VivoPower’s releases, visit the Press Releases page.

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