ITOCHU, Ener1 Commercialize Technology

Advanced Battery Technology, Nov 2003

Ener1 Inc. of Ft. Lauderdale, Florida, and ITOCHU Corp. of Tokyo, Japan, are forming a new company. ENERSTRUCT Inc., which has exclusive rights to commercialize Ener1's and ITOCHU's high-rate lithium battery technologies in Japan.

ITOCHU will own 51% of ENERSTRUCT, Enerl 49%. The new company will be managed by ITOCHU, which will guide the entity's commercialization activities in Japan, where there is a significant market for these high performance batteries.

ENERSTRUCT will develop and commercialize a lithium battery representing an entirely new concept for battery production. The nanostructure process will allow significant increases in battery discharge rates compared to existing lithium-ion batteries and nickel metal-hydride (NiMh) batteries for automobile use. The new battery is expected to replace the NiMh batteries used in hybrid fuel cell vehicles. The nanostructure process also provides a long cycle life and makes it possible to achieve nanoscale structures for electrode thickness and density that are impossible to achieve using the existing lithium-ion coating processes.

Enerl, Inc. also arranged for expanded financing from Enerl Group, Inc., its majority investor. The additional funds will bring total Enerl financing from Enerl Group to more than $6.5 million in 2003.

The new funds will be used for working capital to support Enerl's product development and marketing activities, including work arising from Ener1's alliance with ITOCHU Corp.

Visit http://www.ener1.com.