Axion Power International Inc. announced that it has, following the signing of a Letter of Intent dated October 15, 2012, commenced a strategic relationship with ePower Engine Systems LLC. ePower Engine Systems has consented to a five year initial term with Axion Power that includes the exclusive use of Axion's PbC(R) batteries, and battery management systems, in all ePower retrofits and conversions. The first truck to be outfitted with a PbC battery string has been completed and is now on the road going through its final test procedures.

The truck, a Peterbilt 386 was outfitted with 56 PbC batteries operating in a string configuration and incorporates Axion's proprietary Battery Management System and data logger. ePower's proprietary, patent protected, diesel electric hybrid drive train, with the PbC batteries, efficiently powers the converted vehicles, and is able to reduce fuel consumption through the unique application of power sharing between engine and batteries. PbC batteries use time-tested lead-acid technology enhanced by the complete replacement of the typical lead in the negative anode with Axion Power's proprietary activated carbon material.

This allows for simple manufacturing processes and smooth end-of-life recycling, insuring that the components of these batteries will be completely recycled, unlike the end-of-life inability to recycle some of the other battery chemistries. The ePower/Axion solution is doubly clean/green, because while saving fuel it also reduces CO(2) and NO(X) emissions.