Statement of Changes of Beneficial Ownership

U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 4

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940

[_] Check box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person*

GODEVAIS STEPHAN B.

(Last) (First) (Middle)

C/O VALENCE TECHNOLOGY, INC.

6504 BRIDGE POINT PARKWAY, SUITE 415

(Street)

AUSTIN TEXAS 78730

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol

VALENCE TECHNOLOGY, INC. (VLNC)

3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)

4. Statement for Month/Year

MAY 2002

5. If Amendment, Date of Original (Month/Year)

6. Relationship of Reporting Person to Issuer
(Check all applicable)

[X] Director [_] 10% Owner
[X] Officer (give title below) [_] Other (specify below)

PRESIDENT AND CHIEF EXECUTIVE OFFICER

7. Individual or Joint/Group Filing (Check applicable line)

[X] Form filed by one Reporting Person
[_] Form filed by more than one Reporting Person

Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

                                                                                                             6.
                                                             4.                              5.             Owner-
                                                             Securities Acquired (A) or      Amount of      ship
                                              3.             Disposed of (D)                 Securities     Form:      7.
                                              Transaction    (Instr. 3, 4 and 5)             Beneficially   Direct     Nature of
                                2.            Code           -----------------------------   Owned at End   (D) or     Indirect
1.                              Transaction   (Instr. 8)                   (A)               of Month       Indirect   Beneficial
Title of Security               Date          ------------                  or               (Instr. 3      (I)        Ownership
(Instr. 3)                      (mm/dd/yy)    Code     V     Amount        (D)    Price      and 4)         (Instr.4)  (Instr. 4)
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------

====================================================================================================================================

(Print or Type Response)

FORM 4 (continued)

Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned

(e.g., puts, calls, warrants, options, convertible securities)

                                                                                                                     10.
                                                                                                           9.        Owner-
                                                                                                           Number    ship
                                                                                                           of        Form of
                2.                                                                                         Deriv-    Deriv-
                Conver-                     5.                                7.                           ative     ative    11.
                sion                        Number of                         Title and Amount             Secur-    Secur-   Nature
                or                          Derivative     6.                 of Underlying       8.       ities     ities    of
                Exer-             4.        Securities     Date               Securities          Price    Bene-     Benefi-  In-
                cise     3.       Trans-    Acquired (A)   Exercisable and    (Instr. 3 and 4)    of       ficially  cially   direct
                Price    Trans-   action    or Disposed    Expiration Date    ----------------    Deriv-   Owned     Owned    Bene-
1.              of       action   Code      of (D)         (Month/Day/Year)             Amount    ative    at End    at End   ficial
Title of        Deriv-   Date     (Instr.   (Instr. 3,     ------------------           or        Secur-   of        of       Owner-
Derivative      ative    (Month/  8)        4 and 5)       Date      Expira-            Number    ity      Month     Month    ship
Security        Secur-   Day/     ------    ------------   Exer-     tion               of        (Instr.  (Instr.   (Instr.  (Instr
(Instr. 3)      ity      Year)    Code V    (A)     (D)    cisable   Date      Title    Shares    5)       4)        4)       4)
------------------------------------------------------------------------------------------------------------------------------------
STOCK OPTION    $2.10    05/12/02  A   V    300,000        (1)       05/12/06  COMMON   300,000            1,800,000   D
(RIGHT TO BUY)                                                                 STOCK
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------

====================================================================================================================================

Explanation of Responses:

(1) Option to purchase shares under the 2000 Stock Option Plan. The shares subject to this option vest in equal quarterly installments over a four-year period (18,750 shares per quarter) beginning May 12, 2002.

     /S/ STEPHAN B. GODEVAIS                                   07/16/02
---------------------------------------------            -----------------------
      **Signature of Reporting Person                             Date

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4(b)(v). ** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

Page 2