Ener1, Inc. has announced that its EnerDel subsidiary entered into a Supply Agreement with Think Global of Oslo, Norway, the manufacturer of the Th!nk City electric vehicle (EV). Under the agreement, Think Global has selected EnerDel as the supplier of choice for prismatic Lithium ion (Li ion) batteries that will be used to power its Th!nk City vehicle. EnerDel will use its experience in battery management system integration already implemented in its recently unveiled HEV product. EnerDel's Li ion solution for the Electric Vehicle drive train is designed to have higher energy density than HEV cells and to enable vehicles to last up to a goal of 100 miles (160 kilometers) without recharging.
Under the Agreement, EnerDel must deliver production prototypes in March 2008 and pre-production parts in July 2008, with a value of approximately $1.4 million. Once these milestones are met to the satisfaction of Think Global, production orders under the contract are expected to result in EnerDel battery sales of $70 million over the two-year period ending in 2010. Under Think's growth plan, the total value of the contract could eventually exceed $200 million.
Charles Gassenheimer, Chairman of Ener1 and Peter Novak CEO of Ener1, stated, "The Ener1 team has met its goal of signing a Li ion battery development contract with an automotive customer in 2007. This contract with Think is the commercial breakthrough that will provide the investment community with a clear picture of the substantial revenues and cash flows that are possible in the Li ion battery market. EnerDel is now working on products in each of the major electric vehicle battery categories -- HEV, PHEV and EV. The management and development team at EnerDel have developed a technology that we believe is superior to all existing competitive technologies, and this agreement validates our efforts over the last two years. At the same time, we believe that timely execution on this contract is critical to sustaining the competitive advantage we believe we have established in the marketplace."
Ulrik Grape, EnerDel's Chief Executive Officer, added, "Supplying batteries to Think gives EnerDel the opportunity to work with one of the most exciting and market-ready EV products today. It is truly rewarding to be working on this technological breakthrough with such an innovative company. While our battery for hybrid electric vehicles is unique in its design for safety, power and long life, we believe that our PHEV and EV technology will also set the standards for delivering safe energy for longer distances."
Jan-Olaf Willums, President and Chief Executive Officer of Think Global stated, "We are confident in EnerDel's capabilities to deliver this safe, reliable and high energy battery system that will power the electric vehicle of the future. While this is the largest Lithium ion battery contract in the automotive industry to date, we expect demand for our vehicle and the resulting battery supply requirements to increase substantially from these levels."
