Ener1 to Produce Batteries with Wanxiang

Where Chinese car manufacturers have failed, Chinese battery producers will definitely make a last impression on the market. As the hybrid and electric vehicles market expands, the Chinese companies and their importance for the industry grows, and no one knows that better than the producers coming from the western world.

Ener1, one of the largest players on the market, recognized both the experience and the advantages an alliance with a Chinese producer would mean for its business and announced this week the signing of an agreement for the creation of a joint venture with Wanxiang Group Corporation.

The newly formed company will manufacture lithium-ion cells and battery packs for the Chinese market. The products will be at first used in the light- and heavy-duty automotive and power grid customers currently working with the Chinese side.

"Wanxiang and Ener1 share a vision to help fulfill our country's strong commitment to electrifying transportation on a mass scale and to deploy lithium-ion technology to improve the effectiveness of the power grid," said Lu Guanqiu, founder and chairman of Wanxiang Group.

"We believe our manufacturing expertise and deep customer relationships throughout China and in the region will help ensure the success of this timely technology venture."

The new company, called Zhejiang Wanxiang Ener1 Power System will operate from Wanxiang Electric Vehicle's plant in Hangzhou. The stated goal of the new endeavor is to manufacture 40,000 electric vehicle battery packs each year by 2014. The new company is majority owned by the Chinese side, with Ener1 holding only 40 percent.