Ener1 Installs First Phase Production Line

September 13, 2006 by Jeff Shepard

Ener1, Inc. announced that its EnerDel battery company has installed its first mass production line for lithium ion (Li-Ion) battery electrodes at the company's Indiana facility. The production line is capable of producing the electrode equivalent of 5,000 Hybrid Electric Vehicle (HEV) batteries (25kW) per month. The investment in this new equipment is an important step forward in the company's plan to become a leading, U.S.-based supplier of Li-Ion batteries for automotive applications. EnerDel can now demonstrate its production approach and expertise to automotive companies and OEMs, as well as begin their required qualification process to mass produce batteries for their future HEV models.

EnerDel's production line also supports the company's work with the United States Advanced Battery Consortium (USABC), a part of the U.S. Council for Automotive Research – a group for collaborative research among DaimlerChrysler Corp., Ford Motor Co. and General Motors Corp. The USABC is focused on securing a supply of U.S.-based Li-Ion batteries for the U.S. auto industry. In June, USABC awarded EnerDel a contract to produce a new Li-Ion battery based on advanced battery materials and low-cost production technologies. The funding validates EnerDel's path to produce a battery that is lighter, smaller and higher in power than existing HEV batteries. EnerDel believes that securing a local, U.S.-based supply of Li-Ion batteries for hybrid vehicles is crucial to the success of automotive manufacturers producing hybrids in North America. The U.S. is the largest market for HEVs and the majority of the cars sold in the U.S. are also manufactured here.

Charles Gassenheimer, Chairman of Ener1, Inc. commented, "The goal here is to reduce the dependence on foreign oil. It doesn't make sense to switch our reliance on foreign oil to a dependence on a foreign supply of Li-Ion Batteries for cars and trucks." He added, "Our strategy is to become one of the first companies to ensure a domestic supply of Li-Ion batteries. I am pleased with the progress we are making in our ability to address this challenge for the U.S. automotive industry."