EnerDel to Invest $237 Million in New Indiana Lithium-Ion Battery Plant

January 23, 2010 – Vol.14 No.44

EnerDel to Invest $237 Million in New Indiana Lithium-Ion Battery Plant.

The Indianapolis, Indiana-based battery maker has announced that it will invest $237 million in a new manufacturing plant near its headquarters in order to meet anticipated demand for advanced battery systems used in both automotive and stationary smart grid applications. Backed by a mix of private funds and public incentives, the new facilities will more than double EnerDel's U.S. production capacity and create 1,400 new jobs.

Helping to bring the new plant to the area were state and local economic development incentives valued at $69.9 million including a state incentive package of $21.3 million and Hancock County package valued at $48.6 million. EnerDel has also applied for an additional $9 million from Federal Government development programs.

The new plant will give EnerDel the capacity to produce battery packs for approximately 600,000 hybrid electric vehicles, or 60,000 battery electric cars. It will be financed through a $118.5 million grant awarded under the federal stimulus package under a 50:50 cost-share program, of which EnerDel plans to spend $60 million in 2010. The project represents just the first stage of the company's expansion plans in the Indianapolis area.

EnerDel will immediately begin to occupy more than 211,500 square feet of newly-constructed space in the Axcess70 industrial park in Mt. Comfort, Indiana, with a two year option to purchase the entire facility which is comprised of 423,000 square feet. The company is currently in the process of hiring new engineers, production associates and other staff as build-out progresses. Axcess70 is a 153 acre industrial and distribution park developed by a joint venture between Browning Investments, Inc. and Real Estate Capital Partners and consists of two speculative buildings located just north of the I-70/Mt. Comfort Interchange, which is currently being expanded.

EnerDel has commercial and strategic partnerships with industry leading companies including Volvo, THINK, Nissan and Mazda, and is supplying batteries for a prototype hybrid version of the Humvee being tested by the U.S. Army. EnerDel batteries have recently been chosen for smart grid projects in the U.S. and Japan.

The company also has an ongoing application for a long-term, low-interest loan under the federal Advanced Technology Vehicle Manufacturing program, which was created under the 2007 Energy and Security Independence Act 2007 to help U.S. automakers and their suppliers meet stronger fuel economy performance standards.

EnerDel, a subsidiary of Ener1, develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles. (1/21/10)

Links:

Ener1
http://www.ener1.com

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Disclaimer, Forward-Looking or Safe Harbor Statement on original press release: Yes