Tuesday, September 2, 2008

Ener1 CEO paints rosy future for li-ion battery technology

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Ener1 has been in the news quite a bit these last few weeks, and new CEO (and former and current Chairman) Charles Gassenheimer thought it prudent to write a letter to shareholders about the current status of the company and the future of li-ion batteries in the automotive market. Some of the highlights of things we haven't covered recently include:

  • Gassenheimer believes that each dollar Ener1 invests in the automotive battery subsidiary EnerDel will "return between $4.00 and $6.00 in revenues annually." Gassenheimer says carmakers will need $150bn worth of li-ion batteries each year at some point in the undefined future. Domestic automakers "will require, or at least have a firm preference for, domestically manufactured batteries."
  • Nonetheless, future battery plants will of necessity be located around the world.
  • Ener1 and EnerDel are poised to use their "first-mover" advantage in li-ion battery tech which was gained by supplying the 27 kWh packs for Th!nk.
  • Ener1's shareholder equity was $35m at the end of June.

You can read the entire letter after the jump.