Ener1, Inc. announced that it has signed a technology license agreement with ITOCHU Corp. that will grant Ener1 an exclusive world-wide license to certain "know-how" developed by EnerStruct and a certain patent and patent applications of EnerStruct and ITOCHU regarding lithium ion battery technology. EnerStruct, a joint venture between Ener1 and ITOCHU, has successfully completed the development of lithium ion materials and manufacturing processes which are now in use in EnerDel’s battery operations.
Under the terms of the transaction, Ener1 will pay 180 million yen (approximately U.S. $1.5 million) to ITOCHU through the issuance of 3,333,333 shares of Ener1 common stock priced at 30 cents per share and a payment obligation in the amount of $519,885 payable in installments over ten months. In addition, ITOCHU has signed a lock-up agreement restricting the sale of Ener1 common stock held by ITOCHU until March 31, 2008. Ener1 is forming a new subsidiary, EnerDel (Japan), Inc., to continue its Japanese operations while retaining key employees of EnerStruct.
Yutaka Kato, Chief Operating Officer of ITOCHU’s Industrial Machinery Division, commented, "We are very pleased with the success of this technology venture, and look forward to continuing our strategic relationship as an investor in and business partner with Ener1."
Charles Gassenheimer, Vice Chairman of Ener1, stated, "EnerStruct has been a very successful technology development vehicle for both Ener1 and ITOCHU. It has developed materials and processes that are critical to the success of our lithium ion battery development at EnerDel. We thank ITOCHU and the employees of EnerStruct for their tireless efforts during these past two years. We look forward to our continuing strategic relationship with our Japanese partners, who have been instrumental to our success to date."
