Ener1 and Wanxiang Sign Strategic Joint Venture Agreement
Date: 01/18/2011
Company: ENER1
Source: PR Newswire
Advanced Li-ion Battery Technology, State-of-the-Art Manufacturing Facilities and Existing Customer Base Position New Company for Success
NEW YORK and HANGZHOU, China, Jan. 18, 2011 /PRNewswire/ — Ener1, Inc. (Nasdaq: HEV), a leader in lithium-ion battery technology, and Wanxiang Electric Vehicle Co., Ltd., a division of the Chinese conglomerate Wanxiang Group Corporation, today signed a joint venture agreement to co-manufacture Li-ion cells and battery packs for the rapidly growing Chinese market. The new company will harness cutting-edge American technology and advanced Chinese manufacturing capability to produce battery systems for Wanxiang’s several existing light- and heavy-duty automotive and power grid customers for delivery this year.
“Wanxiang and Ener1 share a vision to help fulfill our country’s strong commitment to electrifying transportation on a mass scale and to deploy lithium-ion technology to improve the effectiveness of the power grid,” said Lu Guanqiu, founder and chairman of Wanxiang Group. ”We believe our manufacturing expertise and deep customer relationships throughout Chinaand in the region will help ensure the success of this timely technology venture.”
The signing takes place against the background of a state visit by Chinese President Hu Jintao and expanding U.S.-Chinabilateral initiatives to spur cooperation in transportation electrification and grid energy storage, a hallmark of the Obama administration’s policy toward China. The Chinese government, anticipating the environmental and oil demand impact of potentially hundreds of millions of new vehicle purchases by a burgeoning middle class, has set an annual production goal of 500,000 hybrid or all-electric cars and buses by 2012.
