Leading Mongolian automotive distributor Bodiz International Group LLC intends to purchase 350 electric light vehicle conversion kits from VivoPower subsidiary Tembo e-LV B.V over the next 5 years.
VivoPower estimates the value of the Distribution Agreement to be US$29m.
The Distribution Agreement marks the Company’s fourth major distribution deal across four continents.
VivoPower is pleased to announce that the Company has signed a definitive agreement with Bodiz International Group for Bodiz to distribute electric light vehicles (e-LVs) in Mongolia using e-LV conversion kits from VivoPower’s wholly-owned subsidiary Tembo.
Under the agreement, Bodiz intends to purchase 350 Tembo e-LV conversion kits through December 2026. The Company estimates these orders to be worth up to US$29 million in potential revenue over the life of the Distribution Agreement. Bodiz will be responsible for acquiring original vehicles from Toyota, converting the vehicles to ruggedized e-LVs using the Tembo solutions, selling the units to end-customers, and providing ongoing servicing and maintenance.
The Tembo kits 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. 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 decarbonization.
This Distribution Agreement marks VivoPower’s fourth major distribution deal in 2021 for Tembo e-LVs across four continents and continues to advance the Company’s aim to build a global Tembo distribution network before the end of this year. The Company previously completed distribution deals with GB Auto Group in Australia and Acces Industriel Mining Inc. in Canada and has also announced a non-binding Heads of Terms with Arctic Trucks Limited for distribution of Tembo e-LVs in Norway, Sweden, Iceland, and Finland. The latter deal is expected to be finalized in the coming weeks.
Based in Ulaanbaatar, Bodiz has been distributing ruggedized SUVs and other heavy-duty vehicles to the Mongolian market since its founding in 1997. In addition to Tembo vehicle distribution, the Distribution Agreement includes plans for Bodiz to send technicians to Tembo’s Netherlands headquarters to be trained in e-LV conversion, as well as a potential expansion of Bodiz’s facilities to service Tembo electric vehicles.
Kevin Chin, Executive Chairman and CEO of VivoPower, said: “We are pleased to continue expanding our global distribution network for Tembo e-LVs through this partnership with Bodiz. With the signing of this Distribution Agreement, Tembo e-LVs will be available to mining and other heavy industrial customers aiming to decarbonize their fleet operations through distribution partners on four continents. We look forward to building this relationship and working with Bodiz to support more customers on the drive to net zero.”
Dulguun Baatarsukh, CEO of Bodiz, said: “Bodiz is very glad to become a member of the Tembo e-LV family. Mongolia’s economy, especially the mining sector, is growing rapidly with one of the world’s richest mineral resources. It is an honor to sign this Distribution Agreement with VivoPower for Bodiz to introduce Tembo e-LVs to our domestic market and take part in the global change of electrification. I hope we will continue to strengthen this partnership and cooperation in the long run and make a significant contribution to the mining sector in our region.”
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