updated: 10/31/2011 1:09:22 PM
A spokesman for the U.S. Department of Energy tells Inside INdiana Business the status of Indiana-based lithium-ion battery maker EnerDel is being closely monitored. Parent company Ener1 Inc. has been de-listed by Nasdaq late last week after failing to meet requirements. The energy department provided a nearly $120 million grant to help the company build electric car batteries.
Inside INdiana Business reported last week that the Nasdaq had warned the company it would be de-listed and Friday's action was a formality after Ener1 decided not to appeal.
Ener1 has replaced its chief executive officer this year and announced it would have to re-state a quarterly filing after saying previous statements should not be relied upon.
The company has also experienced problems after the bankruptcy of electric car maker Think Global. Ener1 had a minority stake in the company.
Ener1 is also facing legal action from people claiming it was not forthcoming with details about the company's financial status.
Source: Inside INdiana Business, Ener1.com, U.S. Department of Energy.
October 31, 2011
Statement From U.S Department of Energy
This is one of 30 new advanced battery and electric vehicle component plants that the Administration has invested in across the country, creating the potential for tens of thousands of direct and indirect jobs. The U.S. will have increased our capacity to produce electric-drive vehicles batteries from virtually zero in 2008 up to 500,000 per year in 2015. These investments are building domestic capacity for manufacturing advanced technology vehicles and components - helping to ensure the U.S. remains a leader in a fiercely competitive global automotive battery market that was recently estimated to reach more than $14 billion in revenues by 2017 and in which other governments are investing heavily.
EnerDel, whose parent company is Ener1, received a grant - not a loan - through the Recovery Act for $118.5 million to expand an existing battery manufacturing facility and upgrade its equipment and build a new facility with new equipment. The project has received broad bipartisan support and to date has progressed according to schedule and on budget. EnerDel is to provide a 50% cost share, or $118.5 million of their own funds, for a total project value of $237 million.
The Department is closely monitoring the status of the company. So far $55 million of the grant has been paid out to EnerDel. Any additional funds received from the government would need to be matched dollar for dollar with their own investment.
Source: U.S. Deparmtent of Energy