• Oct 15th 2007 at 5:24PM
  • 13
Ener1Del has signed a deal with Think Global, the makers of the Th!nk city car, to become the supplier of choice for lithium-ion batteries. Under a development agreement between Ener1 and Think, Ener1 will deliver production prototypes to Think in March 2008 and pre-production parts (valued at $1.4 M) the following July. Once those milestones are reached, Ener1 expects $70 M in sales in 2008-2010 and, depending on growth from Think, Ener1 expects sales from the entire contract to be worth $200 M.

Charles Gassenheimer, Chairman of Ener1 and Peter Novak CEO of Ener1 says "This contract with Think is the commercial breakthrough that will provide the investment community with a clear picture of the substantial revenues and cash flows that are possible in the Li ion battery market." Jan-Olaf Willums, President and Chief Executive Officer of Think Global stated, "We are confident in EnerDel's capabilities to deliver this safe, reliable and high energy battery system that will power the electric vehicle of the future. While this is the largest Lithium ion battery contract in the automotive industry to date, we expect demand for our vehicle and the resulting battery supply requirements to increase substantially from these levels."

$200 M sounds like a lot of cars, especially if you consider Ener1 is promising amazing reductions in the price of the battery. I would guess Think expects car sales with Ener1's batteries in the tens of thousands - maybe even hundreds of thousands. With a deal like this, other car companies are sure to come looking at Ener1's technology and our bet is on Toyota because we already noticed they seem to be working on a Prius in the lab. You can read the press release in full below the fold.

[Source: Ener1, Inc.]
Press Release Source: Ener1, Inc.

Ener1 Awarded Lithium Ion Battery Development and Supply Contract With Think Global

Monday October 15, 4:05 pm ET
Delivery Schedule Demonstrates Visibility to $70 Million in Revenue by 2010

FT. LAUDERDALE, Fla., Oct. 15 /PRNewswire-FirstCall/ -- Ener1, Inc. (OTC Bulletin Board: ENEI - News) announced today that its EnerDel subsidiary entered into a Supply Agreement with Think Global of Oslo, Norway, the manufacturer of the Th!nk City electric vehicle (EV). Under the agreement, Think Global has selected EnerDel as the supplier of choice for prismatic Lithium ion (Li ion) batteries that will be used to power its Th!nk City vehicle. EnerDel will use its experience in battery management system integration already implemented in its recently unveiled HEV product. EnerDel's Li ion solution for the Electric Vehicle drive train is designed to have higher energy density than HEV cells and to enable vehicles to last up to a goal of 100 miles (160 kilometers) without recharging.

Under the Agreement, EnerDel must deliver production prototypes in March 2008 and pre-production parts in July 2008, with a value of approximately $1.4 million. Once these milestones are met to the satisfaction of Think Global, production orders under the contract are expected to result in EnerDel battery sales of $70 million over the two-year period ending in 2010. Under Think's growth plan, the total value of the contract could eventually exceed $200 million.

Charles Gassenheimer, Chairman of Ener1 and Peter Novak CEO of Ener1, stated, "The Ener1 team has met its goal of signing a Li ion battery development contract with an automotive customer in 2007. This contract with Think is the commercial breakthrough that will provide the investment community with a clear picture of the substantial revenues and cash flows that are possible in the Li ion battery market. EnerDel is now working on products in each of the major electric vehicle battery categories -- HEV, PHEV and EV. The management and development team at EnerDel have developed a technology that we believe is superior to all existing competitive technologies, and this agreement validates our efforts over the last two years. At the same time, we believe that timely execution on this contract is critical to sustaining the competitive advantage we believe we have established in the marketplace."

Ulrik Grape, EnerDel's Chief Executive Officer, added, "Supplying batteries to Think gives EnerDel the opportunity to work with one of the most exciting and market-ready EV products today. It is truly rewarding to be working on this technological breakthrough with such an innovative company. While our battery for hybrid electric vehicles is unique in its design for safety, power and long life, we believe that our PHEV and EV technology will also set the standards for delivering safe energy for longer distances."

Think Comment:

Jan-Olaf Willums, President and Chief Executive Officer of Think Global stated, "We are confident in EnerDel's capabilities to deliver this safe, reliable and high energy battery system that will power the electric vehicle of the future. While this is the largest Lithium ion battery contract in the automotive industry to date, we expect demand for our vehicle and the resulting battery supply requirements to increase substantially from these levels."

About Think Global

Based in Oslo, Norway, Think Global is the leading electric vehicle manufacturer in Europe. Formerly owned by Ford Motor, the company was purchased by a group of Norwegian investors in 2006. Think Global recently raised $95 million in equity capital from investors including DFJ Element, Rockport Capital Partners, British Hazel Capital, The Heinz Family Office, and Wintergreen Funds, as well as a number of influential Norwegian investors. Think's existing factory in Norway is presently being upgraded by Porsche Consulting to make it one of Europe's most cost efficient assembly plants ready to mass-produce the Think model in 2008. For more information, please visit: www.think.no

About Ener1, Inc.

Ener1, Inc. (OTCBB: ENEI - News) is an alternative energy technology company that is developing 1) lithium ion batteries for hybrid electric vehicles (HEV) at its 80.5% owned EnerDel subsidiary, 2) commercial fuel cell products through its EnerFuel subsidiary, and 3) nanotechnology-based materials and manufacturing processes for batteries and other applications at its NanoEner subsidiary. For more information, visit http://www.ener1.com or call 954-556-4020.

About EnerDel, Inc.

EnerDel is owned by Ener1, Inc. (80.5%) and Delphi Corporation (19.5%). EnerDel has a pilot production facility in Indianapolis, Indiana. EnerDel currently employs approximately 60 highly experienced engineers and technicians involved in the battery development of both cells and systems. For more information, please visit: www.enerdel.com

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995 conveying management expectations as to the future based on plans, estimates and projections at the time the statements are made. The forward-looking statements contained in this press release involve risks and uncertainties, including, but not necessarily limited to: the Company's ability to achieve the milestones upon which funding from its controlling shareholder is conditioned; EnerDel's ability to succeed as a supplier of batteries to the hybrid electric vehicle and other markets; Ener1's ability to successfully develop and market proposed lithium battery, fuel cell and nanotechnology-based products and services; the degree of competition in the markets for lithium battery, fuel cell and nanotechnology-based products and services; EnerDel's ability to deliver prototype, production samples and finished product to electric vehicle customers; the estimated future sales for EnerDel's EV batteries; Ener1's history of operating losses; EnerFuel's ability to complete the development of and sell the surveillance camera; the lack of operating history for the development stage Ener1 businesses; the need for additional capital; the dependency upon key personnel; and other risks detailed in filings made from time to time with the Securities and Exchange Commission. These risks and uncertainties could cause actual results or performance to differ materially from any future results or performance expressed or implied in the forward- looking statements included in this release. Ener1 undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.


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  • 13 Comments
      • 7 Years Ago
      I too would love to get a Th!nk but at the moment its just vapourware with minimal communication.

      Look at Tesla - their website and blog is giving you constant information and details about what is going on. Sure its a totally different class of vehicle and client, but that is EXACTLY the sort of thing I'd like from a funky, young, innovative product like Th!nk.

      The people looking to buy this as a first-adopter are not your stuffy, old-school customers, neither will they be mums nipping down the shops. They are going to be clued-up, empowered, intelligent people brought up on a diet of instant internet information and collaboration ... yet Th!nk give us next to nothing!

      Please sort it out Th!nk! As said, Tesla is a great role-model in building a real buzz and (dare I say it) "community" around their product and I genuinely feel that Th!nk can take this to the next level with what appears to be a great product.
      • 7 Years Ago
      I too have looked at the Think City with interest. I would also point out that their current price for the City is prohibatively expensive. It's price in Norway is 199k NOK. In addition to this you also have to pay a monthly maintenance fee of 975NOK to cover leasing the battery amongst a few other things. Why such a high price for the car if your leasing the battery?? Just doesn't make sense.

      All this would be fine if it was comparable in size to say a Prius but at it is its just a 2 seater car. You could buy a Smart for half the price. Not electric I know but its one hell of a premium to pay.
      • 7 Years Ago
      oh, but mr. Eberhard said its crap. So they must be doing it wrong.
      • 7 Years Ago
      AES said:

      "Nonetheless, Th!nk is a much higher caliber above all the "crap" EV companies before it."

      Like the Zap cars. :)
      • 7 Years Ago
      Think, along with most others, forgot to have the vehicle "designed" to make it appealing. They think it will be fine if they put a poorly "styled" car out. This is the route most of these companies take which is too bad because without the looks you get crap and can't make a market.

      WS
      • 7 Years Ago
      Not everything everyone says must be perfectly what they mean. If you read the blogs at Tesla Motors, you'll know that Martin is kind of a joker.

      And yeah, the appearent business plan for the
      Th!nk is kind of unrealistic. I mean, they can't just build a car to save the world. Th!nk isn't quite a "crap" EV company such as those of the past. I believe they actually are aiming, or are already in the process of, to meet all of the gov't standards and such. That is a huge leap from previous EV companies. Martin has expressed a bit of doubt toward Th!nk however, as to how they are going to become a sucessful company with the bottom up approach. Nonetheless, Th!nk is a much higher caliber above all the "crap" EV companies before it.
      • 7 Years Ago
      "Ener1 has almost $35 million in debt at a 15% interest rate, is hemorrhaging cash, has no customers (well 1 now), and if it weren't for this deal, they'd be in Chapter 7 bankruptcy by January."

      They also have contracts with the USABC for several million which are a bit more trustworthy than Th!nk. Having Delphi as a backer isn't too great, though.
      • 7 Years Ago
      I've seen a TH!NK. We have one kind here at work (the open golf-cart 4 seaters), and they have another kind (ovoid 2 seater) in Palo Alto.

      Let's face it, they're city cars. They're not as "full spec" as even an economy car.

      Full on success of these cars would require a lot of people deciding they never really needed a full-on car anyway, and that a city runabout will do the job for them. Use of city cars and golf carts as 2nd cars is taking off in some communities and with some companies. I hope this continues.
      • 7 Years Ago
      Ener1 has almost $35 million in debt at a 15% interest rate, is hemorrhaging cash, has no customers (well 1 now), and if it weren't for this deal, they'd be in Chapter 7 bankruptcy by January.

      Actually, Ener1 is still dead. Interest payments on that debt alone will eat any profit margins on battery sales.

      Is Think out of its mind? Why in the world would they ink a deal with these clowns?
      • 7 Years Ago
      Have you actually seen a Think? I have, and I'm inclined to agree with Martin. I'm seriously considering using the Think as a primary vehicle as I don't drive that much and I want the all-electric drive. But the points stopping me with the current specs apart from the fact that they don't actually deliver, is the package. Comparing this car to a modern compact as VW Polo I get a smaller car. The performance is a lot lower and it's electronicly stopped at 62mph. The quality of the interior is not even close to a modern Polo, and the price is about the same. As a number 2 car the Think is excellent as a number 1 and only car I'm not so sure.
      I've decided to instead of putting myself on the waiting list, wait until the cars are out among the customers and see whatever battery they end up with. As of now, their webpage still only reflects the Zebra battery package they don't want to talk about any longer and not this EnerDel deal or the large Tesla order they did in May.
      Their communication simply isn't good enough for me to risk being an early adopter.
      • 7 Years Ago
      Norway is a pseudo-OPEC country with a lot of oil and a small population. They make a ton of money drilling it offshore and selling it abroad. Now they want to buy overpriced electric cars for themselves to assuage their guilt, like a heroine dealer going to confession and giving a donation for dispensation. At least their heart is in the right place.
      • 7 Years Ago
      Looking for on the new Think City? It looks slightly better that the old one.
      Here is an article from a Norwegien newspaper showing pictures from the new productionline.
      http://pub.tv2.no/nettavisen/bil/article1467525.ece
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