VivoPower's 5-year decarbonization deal with world's largest carmaker: 'a major milestone' and 'strong endorsement'
VivoPower International PLC (NASDAQ: VVPR) has secured a five-year exclusive manufacturing collaboration with Toyota Australia to electrify Land Cruiser vehicles, integrating VivoPower's conversion kits into the manufacturing process. This partnership, stemming from two years of field trials, is seen as a significant milestone, potentially leading to revenues of €268.5 million by delivering at least 4,475 conversion kits to major mining markets. Analysts project that by 2025, VivoPower could sell 5,000 kits annually, with a projected share value of $19, following strong endorsement from Toyota.
- Five-year exclusive deal with Toyota Australia to electrify Land Cruisers.
- Potential revenue of €268.5 million from agreements in major mining markets.
- Projected sale of 5,000 conversion kits annually by 2025.
- Strong endorsement from Toyota, supporting VivoPower's credibility.
- None.
LONDON, June 23, 2021 /PRNewswire/ -- Nasdaq-listed corporate decarbonization business VivoPower International PLC (NASDAQ: VVPR) today announced an exclusive manufacturing collaboration with Toyota, the world's largest carmaker.
Toyota Australia intends to integrate VivoPower's conversion kits to electrify its iconic Land Cruiser vehicles during the build process - turning chassis originally destined to be diesels into emission-friendly EVs with VivoPower batteries and electric motors.
In an update note issued after the news broke, international equity research house Edison declared the five-year exclusive deal 'a major milestone' and 'a strong endorsement', supporting revenues and dialling down risk as VivoPower prepares to hyperscale.
According to lead Edison analyst David Larkham: 'Toyota is the largest car company in the world, having delivered 9.5m units in 2020. This is a position it has gained through technology, quality and manufacturing excellence. Hence, we see this agreement as providing strong endorsement.
'It is also a real step change for VivoPower to move from re-kitting existing vehicles to being an integrated part of the manufacturing process.'
The deal follows two years of collaboration and field trials in the harsh environment of the Australian mining sector. Whilst the Letter of Intent is not the final contract, it is binding and the end agreement is expected to lock out VivoPower competitors from working with Toyota Australia to electrify Land Cruisers.
Larkham previously valued VivoPower at
Since last year, the business has been building a global distribution network and has signed three agreements, spanning major mining markets including Australia, Canada and the Nordics. Together the deals, announced ahead of the Toyota news, envisage VivoPower delivering at least 4,475 kits to those regions in the next five and a half year with a total revenue of
Toyota sells c 400,000 Land Cruisers a year worldwide, with over 25,000 sold in Australia in 2020 and more than 10 million in total sales since its launch in 1951.
In July 2011 Tesla announced a
Watch Edison's Bitesize Briefing on the VivoPower announcement
Read David Larkham's research update in full
VivoPower is a client of Edison Group
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SOURCE VivoPower
FAQ
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