Ener1, Inc. (Amex: HEV) announced today that it has secured a commitment for a $30 million line of credit from its principal investor, Ener1 Group, that fully funds the company’s business plan through 2009. The terms for the line of credit are being finalized and are anticipated to be disclosed later this week.
Ener1 also confirmed that it remains on schedule to deliver advanced lithium-ion battery systems to Think electric vehicle maker in Oslo, Norway for installation in Th!nk City vehicles for commercial sale scheduled to begin at the end of 1Q09.
Think announced yesterday that the company is extending its holiday shutdown period, while additional funding sources are sought, and will resume production at the end of January. There has been no change to Ener1’s existing purchase order for $34 million.
"We are secure in our funding through the coming year, which gives us the ability to focus solely on execution on the business side, and deliver on our consistent promise to create long-term shareholder value," Ener1 CEO and Chairman Charles Gassenheimer said. "The environment for automotive suppliers and manufacturers has reached a nadir. However, demand to supply advanced battery systems for the dozens of hybrid and electric vehicle programs already committed to by the world’s automakers will remain healthy and robust."
Ener1 is seeking to become the first company to mass-produce a cost-competitive lithium-ion battery for hybrid and electric vehicles. In addition to the automobile market, applications for Ener1 lithium-ion battery technology include medical, military, aerospace, electric utility and other growing markets.
Major shareholders of Ener1 include Ener1 Group, Inc., a privately held, global investment and advisory firm, and ITOCHU Corporation, a Japanese trading company and distributor of manufacturing equipment essential to lithium-ion battery production.
In addition to battery technology, Ener1 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.
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