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Ultracharge Limited (ASX:UTR) has inked an agreement to supply lithium-ion batteries for the three-wheel electric scooters manufactured by Israel-based Roadix Urban Transportation Ltd. The news sent the Ultracharge shares to jump up 50% to last trade at $0.012 on 5 December 2018.
Governed by the laws of Israel, the purchase agreement will see Ultracharge designing, developing and manufacturing a lithium-ion pouch-cell battery that will be fully compatible with Roadixâs three-wheel electric scooter. As per the forecasted schedule of the company, Ultracharge will supply 16,500 batteries to Roadix in three years.
Commenting on the supply deal, Ultracharge CEO Kobi Ben-Shabat stated this purchase contract further validates the Ultracharge ability to deliver customized, high voltage and cobalt-free lithium ion battery solutions to third party.
The agreement includes the development of high voltage lithium-ion batteries by Ultracharge that needs to meet the technical specification which the parties have agreed. These high-end battery solution targets to boost the torque and horsepower of Roadixâs three-wheel scooters. Moreover, it will increase the range of a scooter to 40 kilometer that could potentially take the Israel player Roadix sit among the top global brands of two wheel and three-wheel electric scooters.
CEO of Roadix Urban Transportation, Amir Zaid stated that Roadixâs core objective to enhance environment sustainability will be served by the use of Ultrachargeâs lithium-ion battery solution that delivers higher power, more torque and an extended range.
Roadixâs deal follows similar supply deal that Ultracharge signed in May 2018 with Blitz Motors for their two-wheel electric scooters. Mr. Ben-Shabat stated that with these two supply contracts in place, Ultracharge is now looking forward to strengthening its position as the market leaders in the lithium-ion battery market.
However, Ultracharge stated that some milestones can take place up to 360 days from the date of the agreement. It includes lab testing, modular testing, testing in testing vehicle, and fleet testing among other things. Although Roadix will assist Ultracharge in the commissioning and testing of the batteries, all intellectual property about the batteries will be retained by Ultracharge, told UTR. The terms of agreement also outline the right to terminate the contract in case the breach, if occurred, is not remedied within 14 days after providing the communication of the same.
Ultrachargeâs market capitalization is $7.3 million as at 5 December 2018. Over the past one year, the stock of Ultracharge Limited (ASX:UTR) has witnessed a negative performance change of 69.23%.
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