Valence Initiates New Dual Business Strategy

September 18, 2001 by Jeff Shepard

Valence Technology Inc. (Austin, TX) announced a dual business strategy involving both the licensing of its phosphate-based lithium-ion-polymer battery technology and sales of the batteries themselves.

The company will commercially license its phosphate-based battery technology, as it has its cobalt-based technology in the past. However, Valence is also gearing up to make phosphate-based lithium batteries for sale in new markets, such as industrial and motor, as well as to maintain its presence in the consumer, computer, and communications markets.

Stephan Godevais, Valence's president and CEO, revised the strategy to include battery sales to OEMs. "While this strategy makes the most sense from a marketing perspective, it is also the most compelling from a profitability standpoint," Godevais said in a statement.

As part of this strategy, Valence will launch several configurations of its phosphate-based batteries, ramping up manufacturing at its Mallusk, Northern Ireland, plant. Valence will execute its strategy in stages; the first involves signing its initial phosphate licensee and winning a major system design. Godevais said discussions were under way with several prospective customers, which he declined to name.