Profile: Ener1, Inc. (HEV.O)

Ener1, Inc. (Ener1) is engaged in the business of designing, developing and manufacturing rechargeable lithium-ion batteries and battery systems for energy storage. Its end markets include transportation, stationary power (energy storage for utilities and renewable energy, such as wind and solar power in addition to battery backup systems for the home), military applications and small cell markets. In the transportation markets, the Company is developing systems to power the next generation of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs). This technology is also developed for other transportation markets, including buses and trucks, as well as alternative transportation vehicles. The Company also conducts research on and develops fuel cells and nano coating processes.

On August 12, 2008, Ener1 acquired the remaining 19.5% interest in EnerDel, Inc. (EnerDel). On October 24, 2008, the Company acquired an 83% interest in Enertech International, Inc. (Enertech). On January 6, 2009, Ener1 purchased an additional ownership interest in Enertech, there by increasing its ownership from 83% to 89%.

Ener1’s wholly owned subsidiaries include EnerDel, EnerFuel, Inc. (EnerFuel), NanoEner, Inc. (NanoEner), EnerDel Japan, Inc. (EnerDel Japan) and Ener1 Battery Company (Battery Company). EnerDel develops lithium-ion batteries for automotive, military and other industrial uses. Enertech manufactures lithium-ion battery cells with facilities and equipment located in Chungcheongbuk-do, South Korea and Hackensack, New Jersey. EnerFuel produces fuel cell products and provides fuel cell related technical services. NanoEner is engaged in building prototype equipment that utilizes Ener1’s technology for depositing materials onto battery electrodes as part of the battery cell manufacturing process.

The Company’s primary transportation products consist of lithium-ion batteries and battery packs for HEVs, PHEVs, EVs and other vehicles, such as trucks and buses. Automotive battery packs consist of multiple battery cells that are combined in a module. Modules are linked together and controlled by a battery management system that manages the battery pack’s operation and monitors its performance and safety compliance. The Company has developed a high energy density battery using a hard carbon anode and a mixed oxide cathode to produce a 26 kilowatt hour battery pack for the Think City vehicle. This pack solution is also tested by other customers, and the Company has developed a 12 kilowatt hour pack with similar architecture for an in-vehicle PHEV testing program with a European automotive company. Ener1 has also developed a battery pack system for HEVs.

The Company competes with NEC, Johnson Controls, A123 Systems, Hitachi, Compact Power, Valence, Electro Energy (EEI), Electrovaya, Saft, Eagle Picher, UltraLife and Yardney.