Ener1 buys full ownership of EnerDel

New York's Ener1 (Amex: HEV), which makes advanced battery technology for automotive, military and other industrial uses, announced today that it acquired full ownership of Indianapolis-based EnerDel in a cash and stock deal.

Ener1 grabbed the remaining 19.5 percent interest in EnerDel that it didn't already own from Troy, Mich.-based venture partner Delphi, which has been in bankruptcy protection since 2005. Ener1 paid $8 million in cash and 2.9 million shares of Ener1 restricted common stock for the EnerDel stake.

EnerDel was formed in October 2004 when Ener1 and Delphi, one of the world's largest makers of auto parts, combined their lithium battery operations. Ener1 said the deal was approved by the judge overseeing Delphi's Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York.

"The agreement gives Ener1 sole ownership of crucial assets at an important time in this rapidly growing industry," said Charles Gassenheimer, chairman of Ener1. "It gives us more freedom and greater opportunity to bring innovations to market faster and at lower cost."

"The transition also paves the way for new strategic partnerships, something we have long said is a key competitive objective."

EnerDel, which has a manufacturing facility near Indianapolis, has a contract to provide up to $70 million worth of batteries for Norway's Think Global over the next two years. In June, the companies announced the successful demonstration of an operational battery pack in a Think City electric vehicle (see Ener1, Think demonstrate operational battery pack).

Ener1 said the next production milestone under that deal is the delivery of 20 pre-production units to Think, expected to ship starting at the end of this month.

Cleantech developments making news in the past 24 hours

• Metabolix, ADM to open new bioplastics factory
• Rockwool nears construction on Indian insulation factory
• Two Israeli wastewater firms to locate in Michigan
• Al Gore: Super grid is critical to combating the climate crisis
• A quest for CO2 and O2 optimal management with biofuel from algae

View the last week of cleantech developments here | Subscribe to full feed