NEW YORK and HANGZHOU, China (July 18, 2011) - Ener1, Inc. (NASDAQ: HEV), a leader in lithium-ion energy storage solutions, and Wanxiang Electric Vehicle Co., Ltd., a division of the Chinese conglomerate Wanxiang Group Corporation, today announced that they have received approval from the Chinese government for their joint venture to co-manufacture lithium-ion energy storage systems for the China market.
Government officials, including Party Secretary Zhao Hongzhu from China’s Zhejiang Province, Indiana Governor Mitch Daniels and members of the Indiana Economic Development Corporation, were on hand for the announcement as part of the Indiana-Zhejiang Business Symposium in Indianapolis. The delegation also toured Ener1’s manufacturing plant in Mt. Comfort, Ind., which is one of three facilities the company has throughout the Indianapolis area.
“Indiana is committed to maintaining a climate where innovative businesses like Ener1 can succeed,” Governor Daniels said. “We’re very proud to have played a role in bringing these two companies together and look forward to their shared success as they develop the next phase of the electric car industry. Today’s announcement is an example of one of many fruitful partnerships between Indiana and China and shows that the Hoosier economy has a global reach.”
The new company – Zhejiang Wanxiang Ener1 Power System Co., Ltd – will initially focus on fulfilling existing contracts with State Grid, which is the largest power supplier in China. These projects include providing lithium-ion battery systems for a pure electric bus project for the city of Qingdao, a pure electric car project for the city of Hangzhou, as well as a grid energy storage system. As capacity increases, it is anticipated the joint venture will work with other existing customers, such as SAIC Motor, Dongfeng Motor, Faw Haima Motor, Chang’an Automobile, Guangzhou Automobile and Yutong. The joint enterprise is expected to achieve annual cell manufacturing capacity of 300 million Ampere hours (approximately 40,000 electric vehicle battery packs) annually by 2014.