Global Development For Lithium Battery Manufacturing
Just one week after a controversy regarding international espionage in the electric vehicle (EV) development arena, the announcement of a commercial partnership to make lithium-ion batteries for electric vehicles has been very strongly received by the marketplace.
By Dave Brown - Exclusive to Lithium Investing NewsJust one week after a controversy regarding international espionage in the electric vehicle (EV) development arena, the announcement of a commercial partnership to make lithium-ion batteries for electric vehicles has been very strongly received by the marketplace. The deal between a unit of China's largest auto parts manufacturer, Wanxiang Group Co. Ltd. and Ener1 Inc. (NASDAQ: HEV) indicates a partnership between commercial interests in two nations which have made strong political indications and commitments to supporting vital infrastructural development for the lithium industry. The New York-based battery maker is engaged in the business of designing, developing and manufacturing rechargeable lithium-ion batteries and battery systems for energy storage. With end market segmentation including transportation, small cell, stationary power and military applications, the company also conducts research on fuel cells and nano coating processes. The upside benefit for Ener1 was celebrated in the market place with a relatively large volume of shares trading through the day which sent prices climbing as much as $2.22, for a 60 percent gain, the company's largest single day appreciation since February 1, 2006. Following some profit taking during the later portion of the day shares finished up trading at $4.20, for a 14 percent finish for Tuesday's session. A business unit of Ener1 will own 40 percent of the new venture, contributing intellectual property and technical expertise. The remaining 60 percent of the commercial enterprise will be owned by Wanxiang Electric Vehicle Co. providing an existing factory in Hangzhou, China. The companies said they expect to be able to produce 40,000 battery packs a year by 2014. This objective is anticipated to help meet a target announced by the Chinese government to produce 500,000 electric vehicles annually by 2012.