Nordic distribution deal for Tembo e-vehicles

A Tembo 4x4 e-LV works in underground mining.

VivoPower International PLC announced that the company and its wholly-owned subsidiary Tembo e-LV B.V. have entered into a non-binding Heads of Terms agreement with vehicle converter Arctic Trucks Limited though which Arctic Trucks will convert and distribute Tembo electric light vehicles (e-LVs) 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$58 million in total value over the life of the agreement. The agreement must be finalized prior to June 30, unless the parties agree to an extension.

The Tembo kits are used to transform diesel-powered Toyota Land Cruiser and Hilux vehicles into ruggedized e-LVs for use in mining and other hard-to-decarbonize sectors, including construction and defense. Arctic Trucks specializes in the re-engineering and conversion of four-wheel drive vehicles for extreme conditions, particularly in the harsh polar regions.

Tembo e-LV conversion kits are used to transform diesel-powered Toyota Land Cruiser and Hilux vehicles into ruggedized e-LVs for use in mining and other hard-to-decarbonize sectors.

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 2021. 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. The latter deal is expected to be formalized before the end of June.

“We are extremely pleased to be partnering with Arctic Trucks to expand the distribution reach of our Tembo vehicles,” said Kevin Chin, executive chairman and CEO of VivoPower. “Tembo e-LVs are engineered and built to enable decarbonization 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 ruggedized 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.”