EnerSys will retain a majority interest in the joint venture in cooperation with GAIA Akkumulatorenwerke GmbH (GAIA), a wholly owned subsidiary of Lithium Technology Corporation (LTC).
The joint venture will make use of LTC's "intellectual property" and its lithium-ion manufacturing facility located in Nordhausen, Germany. It's anticipated the joint venture will kick off operations some time this month.
Under terms of the agreement, a division has been formed, EAS Germany GmbH, which will focus solely on the development and production of lithium-ion based solutions for space, naval, marine and renewable energy applications for EnerSys.
READING, Pa., Sept. 28, 2011 /PRNewswire/ -- EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced today it has entered into a definitive agreement to launch a joint venture in Germany to produce large format lithium-ion battery cells.
EnerSys will have a majority interest in the joint venture in cooperation with GAIA Akkumulatorenwerke GmbH ("GAIA"), a wholly owned subsidiary of Lithium Technology Corporation ("LTC"). The joint venture will include LTC's contribution of certain intellectual property, and its lithium-ion manufacturing capability located in Nordhausen, Germany. It is anticipated the joint venture will commence operations in October 2011.
EnerSys and GAIA have had a distribution agreement for the past three years. This joint venture will expand the relationship between the two companies. A new company has been formed, EAS Germany GmbH, which will further the development and production of lithium-ion based solutions for space, naval, marine, renewable energy and specialty high power applications for EnerSys. The joint venture will also provide certain products to LTC for their customers in the transportation sector.
"This joint venture presents several benefits to EnerSys," commented John Craig, chairman, president and chief executive officer of EnerSys. "It represents our fourth investment in advanced lithium based batteries to support our global customers and business. Additionally, we will now have three focused plants in Germany producing advanced lithium, nickel and lead-based products to provide our customers the best energy storage solution for their applications."
Fred Mulder, Chairman of LTC, explained "Our proven product and process technologies are widely respected by our customers and this joint venture with EnerSys will allow for additional investment as well as sales and distribution support for the industrial markets worldwide. Separate from the joint venture with EnerSys, LTC will continue promoting the development of our solutions for the transportation industry."
About EnerSys: EnerSys, the global leader in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. Motive power batteries are utilized in electric forklift trucks and other commercial electric powered vehicles. Reserve power batteries are used in the telecommunication and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions including aerospace and defense systems. The company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.