EnerDel Subsidiary Makes Commercialization Progress on Several Fronts
FORT LAUDERDALE, FL - December 12, 2006 - Ener1 Inc., (OTC Bulletin Board: ENEI - News) announced today that its battery subsidiary, EnerDel, Inc. has recently made several strides forward in its commercialization plans for lithium-ion batteries. These steps are part of EnerDel's multifaceted corporate initiative to take advantage of synergy with affiliated companies and alliance partners. As indicated by its latest notice of patent allowance, EnerDel continues to build its intellectual property portfolio while progressing in commercializing its lithium battery technologies.
First, EnerDel has worked with PrioVista Laboratories, Inc. to complete the installation of new furnace equipment that it will use to develop active battery electrode materials in-house. The high capacity furnace, which is located in EnerDel's Indianapolis facility, can be used to make Lithium Titanate, Lithium Manganese, Lithium Nickel Oxide and other materials. While EnerDel will also work with outside material companies to support mass- production, access to the new furnace equipment will immediately enhance EnerDel's internal materials development capability and help EnerDel to accelerate its product development. The furnace was acquired from ITOCHU Corporation, a shareholder of both Ener1 and PrioVista. PrioVista will also provide on-site support for EnerDel's materials development activities. EnerDel's acquisition of this internal materials development capability is an example of the continuing and increasing synergy among EnerDel and both Ener1's strategic partners and Ener1's affiliated companies.
Second, EnerDel has made its initial delivery of sample battery cells under its recently awarded "Phase I" contract from the United States Advanced Battery Consortium (USABC). Ener1 and EnerDel view this as a major step forward in its lithium-ion battery development program, which is key to its commercialization of battery packs for hybrid electric vehicles. EnerDel expects to deliver the next set of samples to the USABC during the next few months, as part of its continuing effort under its agreement with USABC. EnerDel believes that validating its product at this development stage through its work with USABC will help lay a strong foundation for potential follow-on work with the USABC and subsequent commercial acceptance of EnerDel's lithium- ion battery technology and products by hybrid electric vehicle manufacturers.
EnerDel has also increased its collaboration with its sister company NanoEner (a wholly owned subsidiary of Ener1) for testing and development of advanced electrodes being produced by NanoEner that capable of very high power output using patent pending nanostructure material deposition processes developed by NanoEner. Such electrodes could become part of EnerDel's next generation of lithium-ion batteries for hybrid electric vehicles and other applications.
Finally, EnerDel has been notified of allowance of a US patent "Method for Cell Balancing for Lithium Battery" by the US Patent and Trademark Office. This patent will expand EnerDel's patent portfolio in lithium batteries to 30 granted and 68 pending patents. EnerDel believes the new cell balancing patent will be a significant addition to its portfolio. The inventions covered by the new patent make it possible for the cells of a battery pack to be charged to specific and individual SOC (state-of-charge) levels that are unique and optimal to each individual cell, based upon data collected during the battery's operation.
EnerDel's invention also reduces the time required for charging and balancing of a multi-cell lithium chemistry battery system and reduces temperature peaks that can occur in conventional battery management systems during balancing. All of these improvements are in line with EnerDel's goal of making battery cells with enhanced safety, long life and high reliability.
About Ener1, Inc.
Ener1, Inc. (OTC Bulletin Board: ENEI) is an alternative energy technology company. The company's interests include: 80.5% of EnerDel (www.enerdel.com), a lithium battery company in which Delphi Corp. owns 19.5%; 49% of Enerstruct, a Japanese lithium battery technology company in which Ener1's strategic investor ITOCHU owns 51%; wholly owned subsidiary EnerFuel, a fuel cell products and testing services company (www.enerfuel.com), and wholly owned subsidiary NanoEner, which develops nanotechnology-based materials and manufacturing processes for batteries and other applications (www.nanoener.com). For more information, visit http://www.ener1.com or call 954-556-4020.
Safe Harbor Statement (ENER1, Inc.)
This release contains forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995 conveying management's expectations as to the future based on plans, estimates and projections at the time the statements are made. The forward-looking statements contained in this press release involve risks and uncertainties, including, but not necessarily limited to: Ener1's ability to succeed as a supplier of batteries to the hybrid electric vehicle and other markets; Ener1's plans to reduce costs and gain a competitive advantage by consolidating manufacturing operations and implementing automated production processes; charges Ener1 will incur in connection with consolidating manufacturing operations; EnerFuel's ability to develop and sell products and services in its planned markets; the degree of competition in the markets for lithium battery, fuel cell and nanotechnology-based products and services, Ener1's history of operating losses, the lack of operating history for the development stage Ener1 businesses, the need for additional capital, the dependency upon key personnel and other risks detailed in Ener1's filings from time to time with the Securities and Exchange Commission. These risks and uncertainties could cause actual results or performance to differ materially from any future results or performance expressed or implied in the forward-looking statements included in this release. Ener1 undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.