07:33 GMT, August 25, 2010 VANCOUVER, British Columbia | Production has begun at the Rapid Electric Vehicles (REV) headquarters on a revolutionary new automotive solution: 100% electric bi-directional charging Ancillary Power Vehicles (APVs) as part of the U.S. Army Tank Automotive Research Development Engineering Center (TARDEC) Micro-Grid contract for delivery, testing and demonstration of a Micro-Grid at Wheeler Air Base, Hawaii. Commenced this spring, the order will incorporate three REV 300ACXs and one REV 300AZX based on the best-selling Ford Escape and Ford F150 platforms, respectively. APVs are specialized 100% electric light-duty fleet vehicles designed to increase the security, reliability and efficiency of the electric grid. They combine proprietary propulsion, power management and mobile communication technologies developed by REV. The vehicles are propelled by powerful 125 kW permanent magnet AC motor and gearbox drive systems that deliver 300 Nm (221 ft. lbs) of torque to the wheels. Combined with REV’s wireless networked energy storage systems, this drive system can convert utility and fleet vehicles into 100% electric APVs, thereby displacing the high environmental and economic costs of fossil fuel use. In addition fleets can interact with the APVs in real-time and rely on their combined energy storage for fast-response backup power in the event of damaged transformers, broken power lines, or large spikes in demand.

As the Department of Defense focuses on energy security and looks for ways to further reduce dependence on fossil fuels, there is a need to efficiently manage the power it uses and to supplement that power consumption with renewable sources. The program will involve the design, build and demonstration of a Micro-Grid with plug-in electric vehicles to determine the technical readiness of Micro-Grids to accept power from various inputs while charging the selected vehicles and provide output power to various applications in both AC/DC. The focus area is efficient power management, renewable energy integration, energy storage and smart charging of plug-in electric vehicles.

As a subcontractor to Honeywell Aerospace, REV has been awarded three contracts and is supplying TARDEC with four 100% electric APVs, four 240V Coulomb ChargePoint charging stations and 200 kWh of stationary energy storage powered by Valence Technology (NASDAQ: VLNC), a leader in advanced energy storage solutions. “REV is an innovative leader within the electric vehicle market and Valence is proud to partner with them as they introduce their extremely versatile all electric vehicles,” stated RJ Adleman, Sr VP of Sales and Marketing for Valence.

Using REV’s proprietary control strategies, the APVs energy storage systems can be remotely notified to respond in real-time and store intermittent sources of energy such as solar or wind power. In connection with the use of Micro-Grids, REV’s APVs allow this stored electricity to flow into and out of the vehicles and power high consumption equipment and buildings when connected through the Chargepoints, thereby reducing petroleum consumption.

REV’s CEO Jay Giraud notes, “This is an exciting partnership between REV, Honeywell and TARDEC, demonstrating a collaborative shift in recognizing electric vehicle technology as much more than just a transportation alternative. APV’s in fleet operations will play an important role in increasing the efficiency, sustainability and stabilization of our electricity grids. We are thrilled to be part of a leading team of companies committed to changing how we use energy.”

The TARDEC program underway is one of many partnerships bringing REV’s automotive energy efficiency technologies to industries in North America.