In what is believed to be the most valuable deal for electric vehicles in the Australasian region to date, we have entered a binding agreement with Tembo e-LV B.V and VivoPower PLC to be the exclusive Australia-wide distributor of Tembo core products.
Under this deal, GB Auto has committed to purchasing at least:
- 500 Tembo 4×4 e-LV electric conversion kits in the first year of the 7-year term
- 2,000 kits in the first 4 years, which includes the first-year commitment.
We believe these orders – combined with the value of the converted Toyota vehicles – will generate about US$250 million in revenue over the initial 4-year span.
The agreement will also make VivoPower our partner of choice to finance, build and maintain all products and services related to electric vehicle charging infrastructure, battery storage and micro-grids, which aligns with their 3-pronged sustainable energy solutions (SES) strategy.
“We are excited to partner with VivoPower as its Tembo electric vehicles are ideally suited to the needs of our customers in the mining sector,” said Graeme Bensley, CEO and Founder of GB Auto. “We are already witnessing strong demand for these vehicles, and this agreement bolsters our ability to play a prominent role in the overall drive to improve the sustainability of our economy.”
“We believe this deal will provide the springboard for our holistic SES offering targeted at mining, commercial fleet, government and industrial customers,” said Kevin Chin, our Executive Chairman and CEO. “GB Auto is an excellent partner, given its established reputation and fantastic customer base that includes some of the world’s leading mining houses. We are of the view that this will be a very successful commercial partnership that has the potential to benefit a broad range of industries.”
Our collaboration with Tembo and VivoPower will focus on the next-generation 72 kilowatt-hour battery kit for the Land Cruiser and Hilux models, as well as how other Tembo products can be applied within the mining industry.
Should Tembo offer any additional products for sale during the 7-year agreement term, GB Auto will have a first right of refusal to their distribution rights in Australia, as well. This bodes well given that GB Auto has already deployed pilot vehicles into mines for some of the world’s largest mining companies and is poised to significantly expand its operations.
The deal provides that VivoPower will maintain and own all operating data in the Tembo products, granting GB Auto a license to use the data to sell and service the vehicles.
Subject to COVID restrictions, the first vehicle deliveries are scheduled for mid-2021.