Ener1 announced on October 16th that it has acquired South Korea’s third largest lithium-ion battery cell producer, Enertech International. Ener1 is an American company that manufactures compact, high performance lithium-ion batteries designed to power hybrid and electric vehicles.
Ener1 CEO Charles Gassenheimer:
Enertech is one of the largest lithium-ion battery producers in Korea, behind only LG Chemical and Samsung. This acquisition gives us immediate scale and volume manufacturing ability, as well as an important beachhead for supplying Asian car makers [sic] that plan to use lithium-ion technology in their electric drive vehicles.
Ener1 believes it is the first company to produce automotive lithium-ion batteries in the U.S. Obviously this will make it well placed to supply the domestic lithium-ion battery market, as well as the larger North American market.
This is a unique opportunity for Ener1 to meet the rapidly growing demand for lithium-ion technology from automakers worldwide by securing a fully-operational production facility on terms that strengthen our balance sheet and enhance our position in the industry. Based on the terms of this transaction, shareholders equity is set to increase by approximately $45 million.
Image Source: Ener1 via Newscom