Under terms of the agreement, UPG will have the rights to market, distribute and sell K2’s complete line of lithium iron phosphate products. These products include batteries, prismatic cells and polymer cells, as well as battery modules, systems and packs. UPG will act as a sales and marketing arm for K2 products, establishing growth opportunities through multiple channels in various markets. K2 will provide manufacturing, engineering and technical expertise, as well as support relating to products covered under the agreement.
"This partnership allows for K2 to leverage UPG’s sales and marketing expertise and established channels of distribution in core market segments for our lithium iron phosphate energy storage solutions," said Dr. Johnnie Stoker, President and CEO of K2. "We look forward to executing a definitive agreement with UPG that will allow for further mutual growth opportunities."
"We are pleased to announce this latest step in the development and growth of UPG," said Ian Edmonds, UPG’s President and CEO. "This agreement matches well with UPG’s long-term strategy of penetrating new markets through strategic alliances, and engaging in new and progressive technologies. Our partnership with K2 provides UPG with exposure to the emerging market for electric vehicles, and serves as another platform for future growth. This agreement highlights the kinds of strategic partnerships we are seeking, and we look forward to working together with K2 over the long term."
UPG is planning to display a high performance electric vehicle featuring K2 batteries at the International Consumer Electronics Show to be held January 7-10 in Las Vegas. Terms of the distribution agreement are currently being finalized, and both companies anticipate a definitive agreement on or before February 22, 2010.
Universal Power Group, Inc. (NYSE Amex: UPG) is a leading supplier and distributor of batteries and power accessories, and a provider of supply chain and other value-added services. UPG’s product offerings include proprietary brands of industrial and consumer batteries of all chemistries, chargers, jump-starters, 12-volt accessories, solar and security products. UPG’s supply chain services include procurement, warehousing, inventory management, distribution, fulfillment and value-added services such as sourcing, battery pack assembly, coordination of battery recycling efforts, and product design and development.
K2 Energy Solutions, Inc. is an advanced lithium battery technology company focused on commercialization and manufacture of rechargeable battery systems for electric vehicles and energy storage. The company’s battery systems are based on a lithium iron phosphate cathode material whose inherent safety and low cost makes them ideal for the large format systems required for energy storage and EV applications. K2 differentiates itself as a solutions provider for large format battery packs and systems, developing products based upon customer requirements and utilizing expertise in Lithium Iron Phosphate (LFP) battery chemistry. K2 is a private corporation headquartered in Henderson, Nevada, with manufacturing capabilities in both Nevada and China.