Ener1 Increases Stake in Electric Vehicle Maker in Smart Diversification Move

by John Addison

Ener1 (HEV) took the lead among a group of investors that plans to inject $47 million of equity funding into Think Global AS, the Norwegian electric vehicle producer. Ener1 effectively expands its existing 10 percent stake to a 31 percent stake in Think. Ener1 is the parent company of EnerDel, a leading manufacturer of advanced lithium-ion automotive battery systems and an existing supplier to Think.

Ener1 Chairman and CEO Charles Gassenheimer stated, “Ener1 and Think have collaborated for years on systems development, and today possess a unique ability to bring together category-leading technologies in a fully integrated platform, to suit a wide variety of vehicle applications.” Ener1 appears to be pursuing a business model similar to Bosch Automotive and Magna (MGA). Gassenheimer added, “As a key battery supplier and now partner in the production and marketing of electric drive-train solutions for a range of next-generation vehicles, Ener1 looks forward to a strong future relationship with this industry leader.”

EnerDel and Think have also agreed to enter into a new long-term battery supply agreement as part of the transaction. EnerDel will receive certain exclusivity rights for the supply of lithium manganese titanate batteries for Think’s current and upcoming new vehicle models.

“This investment cements our partnership with one of the leading advanced battery manufacturers in the world,” said Think CEO Richard Canny. “In addition to ensuring supply of high-performance battery systems, the new deal will enable us to more fully capitalize on our advantage in the marketplace with the only ‘plug-and-play’ electric vehicle drive system with prismatic lithium-ion technology.”

Ener1 develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles. In addition to the automobile market, applications for Ener1 lithium-ion battery technology include the military, grid storage and other growing markets.

Ener1 also develops commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary.

Think is a pioneer in electric vehicles, and a leader in electric vehicle technology, developed and proven over 19 years. Think is also a leader in electric drive-system technology, and was the first to market a ‘plug and play’ mobility solution in the business-to-business sector.

The equity funding allows financially struggling Think to exit court protection and resume normal operations with the production of the ready-to-market TH!NK City.
Also participating in Think’s restructuring is Valmet Automotive, a provider of automotive engineering and manufacturing services of premium cars. In 40 years the company has produced over 1,100,000 high-quality vehicles in Finland. Valmet Automotive manufactures Porsche Boxster and Porsche Cayman for Porsche AG. The manufacturing of Fisker Karma hybrid vehicle starts in 2009. The company is a part of Metso.

Diversifying into system integration around a technology platform is an intelligent strategy for Ener 1 who faces tough competition from battery giants who have joint ventures and strategic relationships with major auto makers. Competition includes Panasonic (PC), Hitachi (HIT), NEC, LG Chem, and Johnson Controls-Saft.

Comments

[jerrydd:]

There are far too many battery companies out there now and far too few EV's, PHEV's for the next 4 yrs to put them in. Even then major car companies will make their own or be locked into contracts.

The only real problem good battery makers face is orders. Only those who have them will survive. Smart ones will lock in orders from car companies or far better, peak power uses, either to utilities or make their own peak shaving plants.

Another market is home, small business charging them at night cheaply, then using it during peak load times or even selling the power at much higher prices.

Sep 04 10:06 AM

[Zenfar:]

Question to the author so Valmet Automotive is manufacturing the Fisker Karma? Also is the relationship between HEV and think similiar to the relationship between QTWW and Fisker? If so we are seeing a trend of tech vendor and production companies coming together to see you can make the hit electric car...

Sep 04 01:31 PM

[Midwest guy:]

I agree that the market is filling up but this bit caught my eye.
"Diversifying into system integration around a technology platform is an intelligent strategy for Ener 1"
I will be buying in a bit more
what do you think

Sep 06 03:31 PM

[effeff63:]

I spent the long weekend researching the Li battery situation, and ended up split between Ener1 and Johnson Controls. I must be the only one in the world who saw the $300 mln Gov't stimulus payment to JCI for
Li battery development and production. I had my buy order in at the open and filled it, only to see the stock sell down. To buy a chunk of
HEV on the strength of a cash injection into the oft bankrupt Think
auto company is a little scary unless you're into spec plays. Maybe the price of gasoline in Europe would push auto buyers into an ugly little piece of poop Think City auto, but I don't see it flying
in the US market.

Sep 08 11:33 AM

[medallionstock:]

Seem like a smart move, considering the government subsidies that will be realized by companies involved in all aspects of electric vehicle and hybrid vehicle system components. The Obama administration has released a 2.4 billion dollar package that will mostly go to provide capital for such companies. Yahoo Finance has that information in greater detail:
finance.yahoo.com/news...

Sep 22 01:30 PM