Advertisement

Ener1, Owner Of Lithium Cell Firm, To Emerge From Bankruptcy


Charles Gassenheimer, Ener1 CEO, at Volvo

Charles Gassenheimer, Ener1 CEO, at Volvo

Enlarge Photo

Ener1, the company that owns lithium-ion cell maker EnerDel, will emerge from Chapter 11 bankruptcy in the next two weeks, according to a recent statement by the company.

The firm had sought bankruptcy protection in January, but said it would not go out of business. Its recovery comes after an internal restructuring of both the organization and its debts.

Newly negotiated lending agreements, as well as staff and operations reductions, have convinced backers to provide approximately $86 million in fresh equity.

The revitalized firm will focus on battery supply after the sale of its automotive subsidiary Think Global, which had itself entered bankruptcy last summer. Before its bankruptcy, Ener1's stock had been delisted after the Think failure.

Carmaker Think has since been acquired by a Russian entrepreneur, Boris Zingarevich, who had been the majority shareholder in Ener1 as well. Little has been heard from Think since the new owner took possession. 

CEO Alex Sorkin has not detailed Ener1's post-bankruptcy plans, except to say that the company "will be better positioned to meet the demands of existing and potential customers in the energy storage industry."

Ener1 subsidiary EnerDel, the actual manufacturer of lithium-ion cells in a plant in Indianapolis, was awarded $118 million in economic recovery grants low-interest loans by the U.S. Department of Energy.

To date, according to a statement by an attorney for the firm, it has drawn down $55 million of those funds loans to match $55 million of its own money. EnerDel itself did not enter bankruptcy, and its plant continues to operate.

+++++++++++

Follow GreenCarReports on Facebook and Twitter.

Advertisement
 
Follow Us

 

Have an opinion?

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (4)
  1. Good for them, it's good to hear that they're working things out and not giving up.
     
    Post Reply
    Vote
    Bad stuff?

  2. Existing customers? I think that amounts to the US military. The military are used to paying premium prices, and their primary concern is reliability and long life. So I assume these batteries are robust but not necessarily high energy density or competitively priced for the automotive market. Automotive batteries are dropping in price, soon to reach $200/kWhr. The Th!nk battery was about 20kWhr so that would be about $4000. Th!nk was a very small spartan 2-seat car, so I think about $16k if it had an ICE motor in it. It was priced at $36k so with markup and packaging about half the cost difference would mean the batteries themselves were about $10k. To be competitive they need to reduce the cost by more than half.
     
    Post Reply
    Vote
    Bad stuff?

  3. #Corrections - EnerDel received a $118.5M in DoE grant, not a low interest loan. If it had been a loan, it would have been a $55M debt; as a grant, there's no debt, and it means there's $63.5M available. That's a very big difference - I imagine it was a factor when it came to deciding to keep EnerDel untouched by Ener1's bankruptcy.
     
    Post Reply
    Vote
    Bad stuff?

     
  4. @Nick: Many thanks for the correction. We obviously confused the ATVM low-interest loan program with the battery-plant grants. We've tweaked the text to reflect that.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion? Join the conversation!

Advertisement
Advertisement

Find Green Cars

Go!

Advertisement

 
© 2014 Green Car Reports. All Rights Reserved. Green Car Reports is published by High Gear Media. Send us feedback. Stock photography by izmo, Inc.