Valence, Siemens partner on lithium iron battery for boats

Austin, Texas-based battery maker Valence Technology (Nasdaq:VLNC) said today it has extended its battery deal with a subsidiary of Germany’s Siemens to include hybrid boat.

Shares of Valence jumped nearly 14 percent to close at $2.20 today.

For three years, Northern Ireland-based bus manufacturer Wrightbus has outfitted hybrid double-decker buses in London with energy storage systems from Valence and hybrid drive trains from Siemens Drive Technologies.

Under today's memorandum of understanding, Valence and Siemens Drive Technologies agree to develop modular and scalable energy storage systems for marine applications that incorporate Valence's lithium iron magnesium phosphate batteries.

Siemens' drive train technology is already in use in cranes and boats. In a news release, the company said extending its deal with Valence comes as Siemens looks to grow its share of an increasing market for hybrid drive train products.

Last year, Valence signed a $2 million expansion to its deal to supply lithium phosphate battery systems for light electric vehicles produced by Padua, Italy-based Oxygen, a manufacturer of light electric vehicles.

In April, Valence said it was seeking $608 million in expansion funding to finance the construction of a new manufacturing facility in central Texas to produce lithium iron magnesium phosphate batteries for hybrid and all-electric vehicles (see ERRA plans lightweight EVs with nickel hydrogen batteries). At full capacity, the proposed $760 million facility could supply batteries for 250,000 vehicles a year.

Valence said last week it applied for $225 million in federal funding for the facility.