Axeon drives on with order

SHARES in Axeon jumped 20 per cent yesterday after the company announced a deal worth at least £17.3 million to provide lithium-ion battery packs to a Glasgow-based vehicle adapter.

Allied Vehicles is developing a new range of zero emission vehicles including minibuses and taxis using Peugeot bodies and has awarded the battery contract to Dundee-based Axeon.

Allied has agreed to buy at least 200 battery packs a year over five years starting from September.

Axeon chief executive Hamish Grant said the terms announced signalled a minimum order, and both sides believed there is the potential for "significantly higher" demand.



Axeon now supplies two of the UK's three largest suppliers of electric vehicles. Shares in Axeon rose 11p to 20.4 per cent to 65p.