Advanced Battery to supply technology for ZAP EVs

Santa Rosa, Calif.-based electric vehicle maker ZAP (OTCBB:ZAAP) said it has signed a distribution agreement with Advanced Battery Technologies (OTCBB:ABAT) that will allow it to begin shipping electric vehicles with ABAT's rechargeable polymer lithium ion batteries. 

The distribution agreement comes out of a joint technology development office the pair opened in Beijing in 2007 (see ZAP, Advanced Battery in joint venture). Also that year, ZAP made a deal to buy $5.2 million in batteries from Advanced Battery, which has R&D and manufacturing facilities in Harbin, China (see ZAP makes battery deal).

ZAP outsources its manufacturing and buys its batteries from outside vendors. ZAP has typically sold vehicles with lead-acid batteries but offered lithium ion as an upgrade for about $8,000. ZAP uses battery-management systems by Denmark's Lithium Balance for the upgraded vehicles but had previously declined to name the company supplying the lithium ion batteries (see ZAP, Lithium Balance boost range of Xebra). 

In the newest announcement, ZAP revealed that Advanced Battery Technologies plans to supply the batteries through subsidiary Wuxi Zhongqiang Autocycle. The first vehicles to incorporate the technology are expected to be ZAP's Zappy3 line of scooters. After further development, ZAP plans to use the batteries in its XL/XR extended range pickup, the Shuttle/XR van, and the freeway-capable Alias roadster—all vehicles that ZAP plans to build in the United States (see ZAP to introduce brother of ZAP-X, and sooner).

The companies are also collaborating on other electric vehicle technologies that incorporate Advanced Battery's energy storage and ZAP's designs in wheel motor technology.

"We are impressed with ZAP's grasp of the electric vehicle market and their approach to the design and distribution of affordable electric vehicles," said Advanced Battery CEO Zhiguo Fu in a news release. "We believe our battery technology will be an important part of their long-term success."

In February, ZAP officials told the Cleantech Group they were focusing on light-electric vehicles and fleet customers (see ZAP: Low price, not top speed, drives electric vehicle market).

The company expects to sell 2,000 vehicles this year, said ZAP co-founder Gary Starr. That includes a growing market for electric motorcycles in the U.S. and South America, as well as new electric ATVs, he said. 

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