Another company has put forward an application for funding under the $25 billion Advanced Technology Manufacturing Incentive Program administered by the US Department of Energy.
EnerDel, a lithium-ion battery subsidiary of Ener1, has applied for $480billion of low-interest loans aimed at doubling manufacturing capacity to produce 600,000 hybrid electric vehicle packs a year at its plant in Indiana by 2011. The company also wants to build a second plant capable of producing packs for up to 1.2 million hybrid electric vehicles by 2015.
EnerDel is the only advanced lithium-ion automotive battery manufacturer in the USA and sees its technology as a basic need for every automaker in the world - with that need only likely to increase steadily over time. According to Charles Gassenheimer, Ener1’s chairman and CEO, the company hopes to build a strong US supply chain to keep in touch with Europe and Asia which have already committed vast resources to build production capacity.
If the loans are granted they will be secured by project assets with the Department of Energy required by law to monitor progress closely to ensure the funds are used effectively. The loan’s interest rate is estimated to be around four per cent a year.
Ener1 has already had some success in raising funds - it raised $200 million in the equity capital markets but believes further assistance is needed if it is to meet the US auto industry’s forecasts for hybrid and electric cars and remain competitive.
