Ener1 on Thursday said it would acquire an 83% interest in Enertech International, a South Korean lithium-ion battery cell producer.
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The purchase follows the recent announcement of plans to expand capacity at its lithium-ion automotive battery subsidiary, EnerDel, based in Indiana.
“The acquisition is intended to both broaden and expand Ener1’s production capabilities at a time when automakers worldwide are preparing to launch a new generation of hybrid and electric vehicles,” it said in a statement.
“Enertech is one of the largest lithium-ion battery producers in Korea, behind only LG Chemical and Samsung,” said Ener1 CEO Charles Gassenheimer.
“This acquisition gives us immediate scale and volume manufacturing ability, as well as an important beachhead for supplying Asian car makers that plan to use lithium-ion technology in their electric drive vehicles.”
Gassenheimer believes the acquisition add valuable expertise from Enertech’s engineering team to help accelerate expansion in Indiana.
“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,” Gassenheimer said.
“Based on the terms of this transaction, shareholders equity is set to increase by approximately $45m.”
Enertech is one of a few companies that specialise in producing large format flat (or ‘prismatic’) cells, which Ener1 believes offer significant performance and manufacturing advantages over more common cylindrical designs.
The company operates a 200,000 sq ft plant outside Seoul capable of producing cells for 15,000 electric vehicle battery packs per year. Enertech has also worked with EnerDel to supply cells for prototype and preproduction systems for electric car maker Think Global.
