Corporate Overview
motive
stationary
industrial
military
Lithium Iron Magnesium Phosphate Safety and Performance Redefined
www.valence.com
Overview
Valence Technology, Inc. is an international leader in the development of lithium iron magnesium phosphate energy storage solutions. The company has redefined lithium battery technology and performance by marketing the industry’s first safe, reliable and rechargeable lithium phosphate battery. Founded in 1989, Valence offers a proven technology and manufacturing infrastructure that delivers ISO-certified products and processes that are protected by an extensive global patent portfolio. Headquartered in Austin, Texas, Valence has facilities in Nevada, China and Northern Ireland. Valence is traded on the NASDAQ Capital Market exchange under the ticker symbol VLNC.
Markets
Valence operates in several markets. Our industry experts understand market trends and customer needs across four sectors. Motive
Commercial Vehicles • Buses • Trucks • Vans • Taxis • RVs Passenger Cars Scooters Motorcycles Trains / Trams
Valence’s technology powers a variety of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs).
Stationary
Back-up / UPS APU Starters Hybrid Gensets Switch Gear
Valence is currently working with many large utility companies. The objective is to replace the lead acid batteries with a lighter, lower maintainence, higher performance solution.
Industrial
Floor Cleaners Utility Vehicles Forklifts Electric Trolleys Wheelchairs Robotics
Valence has developed solutions for light traction markets with industrial and retail applications.
Military Defense Homeland Security Valence lithium phosphate energy storage systems are in use in a variety of military applications, such as communications, survey equipment, robotics and submarines.
Products & Services
Valence has emerged from a strong technology and IP base to become the commercial leader in the supply of safe, high volume lithium phosphate products. We excel in four different areas: Development and manufacture of advanced lithium iron magnesium phosphate cathode materials Design and manufacture of programmable lithium iron magnesium phosphate packs and full custom systems On-site applications engineering integration services Global fulfillment, service and support. Valence manufactures complete solutions, from cathode materials to cells, modules and energy storage systems. We also have a global team of applications engineers who provide support and integration services. U-Charge® Family
u-charge®
Providing the power of lithium, the unsurpassed safety of phosphate, and the optimized energy storage of intelligent packs, Valence’s U-Charge® Power System family of products has now been installed in more than 100 applications since it was launched in 2005, offering proven performance. U-Charge® solutions can now be found in an array of electric vehicle applications such as cars, trucks, vans, buses, scooters and boats. It has also been providing energy storage solutions in a range of stationary applications, including telecoms back-up and UPS.
www.valence.com
BatteryManagement System (BMS)
Battery Discharge Indicator (BDI)
Intellectual Property
With over 400 international patents, Valence holds an extensive domestic and worldwide IP portfolio for phosphate cathode materials, the critical technology pathway for next generation energy storage. Our current focus is on lithium iron magnesium phosphate and we hold many patents in that important category. We also hold extensive portfoilio of patents on next generation materials Lithium Vanadium-based Phosphate (LVP) and Lithium Vanadium-based Fluorophosphates (LVPF). The patents also extend to Valence’s innovative single-step preparative method, known as the Carbothermal Reduction (CTR) process, a key step for large scale, low-cost manufacturing.
Global Fulfillment Centres
History
1989 – Founded in San Jose, CA 1992 – Listed on NASDAQ (VLNC) 1995 – Licensed Bellcore “flat cell” technology 1999 – Started manufacturing, in Ireland, of Bellcore cells, Lithium Cobalt and Lithium Manganese 2002 – Launched first commercial Lithium Phosphate (LP) technology 2005 – Launched Gen 1 - automotive 12V modules 2006 – Launched Gen 2 - 12V and 18V modules, with significantly improved Battery Management System 2009 – Planned launch of Gen 3 - Epoch technology forming the backbone of the next generation of LP energy storage systems
Valence has set up global fulfillment centers in Rotterdam (Europe) and Dallas (North America) which will enable us to pass the benefits of local inventory onto our customer base. This local inventory will improve delivery times, reduce costs and maximize customer supply chain efficiency. Customers with supply agreements in place with Valence will not only receive local fulfillment, but also have local applications engineering support as part of our tiered customer services program.
Customers & Applications
By enabling high-performance, safe, cost-effective and environmentally friendly energy storage solutions for large format applications, Valence Technology is reaching markets not traditionally served by lithium ion batteries. Valence has a growing list of customers working in a wide range of applications. Our focus has been on “return to base commercial fl eet vehicles�, and we are delivering volume orders that are being integrated into EV and HEV solutions today!
Oxygen - Europe Electric scooter - Up to 120km. Postal deliveries across Europe
Valence is now starting to focus on passenger vehicles and the stationary energy storage markets.
Valence Milestones
More than 100 global customers are actively testing our products across a range of applications. Since 2005 Valence has shipped over 200,000 battery modules or 70 megawatt-hours of stored energy; this is the equivalent of thousands of vehicles:
PVI - Europe Maxity truck- up to 80km commercial workhorse platform for Renault trucks
= 16,000 scooters = over 6,500 microcars = 3,500 4 door fully electric cars
= over 1,500 3.5 metric ton trucks
= over 800 12 metric ton trucks
Segway - North America Over 85,000 custom packs shipped
= 2,000 hybrid buses
= approximately 150 (182-ft) hybrid yachts
Gomaco - North America Pure electric trolley bus for shopping & residential
Smith EV - Europe Commercial Electric Vehicles - 50 to 100 miles range with top speed of 50mph
Brammo - North America EV Bike - Up to 50mph
Wright Bus - Europe Hybrid EV bus operating across London
Technology
Valence offers two unique technology platforms offering integrated storage and management solutions.
Saphion® technology is our energy storage platform. Commercially introduced in 2002, Saphion® refers to the processes and materials used in developing our novel lithium iron magnesium phosphate cathode materials. This technology is incorporated in the cells that power our range of energy storage modules.
EpochTM technology is our energy management platform. Introduced in 2007, EpochTM is the cell control logic enabling integration of electronics, firmware and software which offers enhanced features in our energy storage solutions. This advanced battery management architecture maximizes module life and performance through enhanced measurement and control capabilities, while providing a robust communications protocol. It is a highly confi gurable technology that enables rapid deployment in custom form factors.
OEM Relationships
Over the past few years, Valence has strongly focused on the Motive market, and we have developed strong relationships with a number of OEM customers.
Electric OEMs
OEM Link
Smith............................ Ford PanelTex....................... Isuzu Micro-vett..................... Fiat The Wright Group......... Volvo Oxygen......................... PSA Peugot Citroen Venturi.......................... PSA Peugot Citroen PVI................................ Renault Zytek............................. Daimler
Traditional OEMs
EVI - North America Industrial utility vehicle for North American distribution
Fiat Renault PSA Peugot Citroen Daimler Iveco Skoda Land Rover MAN Volkswagen Volvo GM BMW
Paneltex - Europe Refrigerated Delivery Van for Supermarket deliveries in Europe
IC Corporation - North America America’s 1st Hybrid School Bus
Operations
Valence Energy Tech (VET) was established in May 2004 with an initial investment of $15M. Two facilities, located in close proximity to each other within the Suzhou Industrial Park, have more than 100,000 sq. ft. of manufacturing space and employ over 400 staff. The ISO 9001 Certified plants are Valence’s manufacturing facilities for cathode materials and pack manufacturing. VET deploys SPC (Statistical Process Control) methods of manufacturing and is currently working towards TS16949 accreditation. Valence Manufacturing Facilities
Suzhou, China To meet ever growing forecasted demand Valence underwent an extensive capacity expansion program during 2008. The company has invested $4M in upgrading the two facilities to enable a ramp-up capacity to 100+ metric tons of cathode material per month and almost 20 megawatt-hours per month of battery modules. Investments include state of the art furnaces, welding stations, wet ball mills and spray dryers.
Focusing on high-capacity equipment and automation, Valence has maximized floor space usage and minimized head count. Our cathode powder and pack processes are easily scalable to meet expected future demands. In 2009, Valence plans to deliver new product lines including next generation battery formats and customized battery trays.
Valence Sales & Marketing
Valence’s Global Sales and Marketing is headquartered in Mallusk, Northern Ireland, with regional offices in Frankfurt, Germany and Austin, Texas (US). Market Development Managers focus on developing strategic industry segments. They cover both our EMEA and our North American regions. Regionally based Inside Sales teams support and serve as primary points of contact.
Valence Europe and Asia Pacific Sales office Mallusk, Northern Ireland
Applications Engineering Support
One of Valence’s strengths is having regionally based teams of highly experienced applications engineers supporting our customer base, assisting not only in the design and development of energy storage solutions, but also in the integration, support and training of our customers as they develop their solutions. Our European team, based in Mallusk, N. Ireland has currently 7 engineers; our US team based in Austin, Texas is currently comprised of 4 engineers. These teams are expected to continue to expand in line with business growth.
Research & Development
Valence is developing solutions both for today and for tomorrow. Our highly experienced R&D team of scientists and engineers are developing technology platforms and solutions across our entire business. We have a team specializing in the development of our proprietary cathode materials. We also have a team developing our next generation of cells and module formats, as well as full electronic integration and custom systems.
European Engineering Applications Support Team Mallusk, Northern Ireland
Corporate Headquarters
Europe/Asia Pacific Sales
Valence Technology 12303 Technology Blvd Suite 950 Austin Texas 78727
Valence Technology Unit 63 Mallusk Enterprise Park Mallusk Co. Antrim Northern Ireland BT36 4GN
Tel: 1-888-VALENCE or +1 512-527-2900 Fax: +1 512-527-2910
R & D Center
Investor Relations
Valence Technology 1889 E. Maule Ave Suite A Las Vegas Nevada 89119
A. Pierre Dubois Pierpont Investor Relations Tel: +1 512-527-2921 Email: pdubois@piercom.com
Tel: +1 702-558-1000 Fax: +1 702-558-1001
Tel: +44 (0)28 9084 5400 Fax: +44 (0)28 9083 8912
www.valence.com
Revision Date February 2009 Corporate Brochure DKA000001