LANDMARK AGREEMENT WITH FRANCISCO MOTORS TO ELECTRIFY JEEPNEYS IN THE PHILIPPINES

Jeepneys are iconic public utility vehicles in the Philippines, representing 40% of public transport

Total addressable market estimated at US$10bn+ (excluding charging and other ancillary solutions)

Established in 1947, Francisco Motors is the original pioneering jeepney manufacturer

Francisco Motors and Tembo are already working towards delivering on committed orders

Deal will benefit Tembo’s customer and partners in other industries including mining & defence

Tembo to gain access to low-cost assembly and manufacturing in Philippines

LONDON,, Sept. 26, 2023 (GLOBE NEWSWIRE) -- Tembo E-LV BV (“Tembo”), a subsidiary of the NASDAQ listed B Corp, VivoPower International PLC (“VivoPower”), is pleased to announce that it has signed a definitive joint venture agreement (“JV”, the “Agreement”) with Francisco Motor Corporation (“Francisco Motors”), the pioneering manufacturers of the iconic jeepneys in the Philippines, which are primarily used for public transportation. Pursuant to the Agreement, Tembo will develop and supply electric utility vehicle (“EUV”) electrification kits for a new generation of electric jeepneys (“e-jeepneys”). Francisco Motors and Tembo have already secured their first orders and have commenced work to deliver on these jeepneys.

One of the Philippines’ cultural icons, jeepneys are the most common utility vehicle in the Philippines and the main mode of public transportation in the country, accounting for just over 40% of public transportation. There are more than 200,000 jeepneys on the road in the Philippines, of which more than 90% are at least 15 years old and running on second-hand diesel engines. In urban areas, jeepneys contribute up to 94% of ultrafine soot particles that are related to adverse respiratory and cardiovascular effects, increased cases of asthma, and premature deaths.

In June 2017, the Philippine government, through the Department of Transportation (DOTr), announced its plan to modernise the public transportation industry. Under the Public Utility Vehicle Modernisation Program (PUVMP), the DOTr requires that all jeepneys and other Public Utility Vehicles (PUVs) with at least 15 years of service be replaced with more energy-efficient and environment-friendly alternatives. The initiative provides jeepney drivers and operators the option of switching to Euro 4-compliant or electric engine vehicles. This creates a US$10bn+ addressable market for the replacement of the old jeepneys.