VLNC Valence Technology, Inc. (MM)

CUSIP No. 918914102 Page 2 of 5 Pages

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1 NAMES OF REPORTING PERSONS
 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS

 ALETHEIA RESEARCH AND MANAGEMENT, INC., IRS number 95-4647814, as general
 partner of various limited partnerships and on behalf of various managed
 accounts.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
 (b) |_|

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3 SEC USE ONLY

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4 CITIZENSHIP OR PLACE OF ORGANIZATION

 California
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 5 SOLE VOTING POWER

 Less than 5% of the number of outstanding shares of any
 class of capital stock of the Issuer
 NUMBER OF -------------------------------------------------------------
 SHARES 6 SHARED VOTING POWER
BENEFICIALLY
 OWNED BY 0
 EACH -------------------------------------------------------------
 REPORTING 7 SOLE DISPOSITIVE POWER
 PERSON
 WITH Less than 5% of the number of outstanding shares of any
 class of capital stock of the Issuer
 -------------------------------------------------------------
 8 SHARED DISPOSITIVE POWER

 0
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 Less than 5% of the number of outstanding shares of any class of capital
 stock of the Issuer
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
 |_|

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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)

 Less than 5% of the number of outstanding shares of any class of capital
 stock of the Issuer
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12 TYPE OF REPORTING PERSON*

 Aletheia Research and Management, Inc.- CO
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CUSIP No. 918914102 Page 3 of 5 Pages


Item 1(a). Name of Issuer:

 Valence Technology, Inc.

Item 1(b). Address of Issuer's Principal Executive Offices:

 12201 Technology Blvd., Suite 150, Austin, TX 78727

Item 2(a). Name of Person Filing:

 Aletheia Research and Management, Inc.

Item 2(b). Address of Principal Business Office or, if None, Residence:

 100 Wilshire Boulevard, Suite 1960, Santa Monica, CA 90401

Item 2(c). Citizenship:

 Not Applicable.

Item 2(d). Title of Class of Securities:

 Common Stock, $.001 par value.

Item 2(e). CUSIP Number:

 918914102

Item 3. If this statement is filed pursuant to Rule 13d-1(b), or 13d-2(b) or
 (c), check whether the person filing is a:

 (a) |_| Broker or Dealer registered under Section 15 of the Act.

 (b) |_| Bank as defined in Section 3(a)(6) of the Act.

 (c) |_| Insurance Company as defined in Section 3(a)(19) of the Act.

 (d) |_| Investment Company registered under Section 8 of the
 Investment Company Act.

 (e) |X| Investment Adviser registered in accordance with Rule
 13d-1(b)(1)(ii)(E).


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CUSIP No. 918914102 Page 4 of 5 Pages


 (f) |_| Employee Benefit Plan or Endowment Fund in accordance with
 Rule 13d-1(b)(1)(ii)(F).

 (g) |_| Parent Holding Company or control person in accordance with
 Rule 13d-1(b)(1)(ii)(G).

 (h) |_| A savings association as defined in Section 3(b) of the
 Federal Deposit Insurance Act.

 (i) |_| A church plan that is excluded from the definition of an
 investment company under Section 3(c) (14) of the Investment
 Company Act of 1940.

 (j) |_| Group, in accordance with Rule 13d-1(b)(1)(ii)(J).

 If this Statement is filed pursuant to Rule 13d-1(c), check
 this box |_|.

Item 4. Ownership.

 (a) Amount beneficially owned:

 (b) Percent of Class:

 (c) Number of Shares as to which the person has:

 (i) Sole power to vote or to direct the vote:

 (ii) Shared power to vote or to direct the vote:

 (iii) Sole power to dispose or to direct the disposition
 of:

 (iv) Shared Power to dispose or to direct the
 disposition of:

Item 5. Ownership of Five Percent or Less of a Class.

 If this statement is being filed to report the fact that as of the
date hereof the reporting person has ceased to be the beneficial owner of more
than five percent of the class of securities, check the following. |X|.

Item 6 Ownership of More than Five Percent on Behalf of Another Person.

 Not Applicable.

Item 7. Identification and Classification of the Subsidiary Which Acquired
 the Security Being Reported on by the Parent Holding Company.

 Not Applicable.


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CUSIP No. 918914102 Page 5 of 5 Pages


Item 8. Identification and Classification of Members of the Group.

 Not Applicable

Item 9. Notice of Dissolution of Group.

 Not Applicable.

Item 10. Certification.

 By signing below, I certify that, to the best of my knowledge and
 belief, the securities referred to above were not acquired and are
 not held for the purpose of or with the effect of changing or
 influencing the control of the issuer of the securities and were not
 acquired and are not held in connection with or as a participant in
 any transaction having that purpose or effect.

 SIGNATURE

Date: February 11, 2008 ALETHEIA RESEARCH AND MANAGEMENT, INC.,


 By: /s/ Roger Peikin
 -----------------
 Name: Roger Peikin
 Title: Executive Vice-President


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