HSPA Infonet
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GREENFIELD — Ener1 will get another $65 million capital boost, which could be good news for its new EnerDel manufacturing facility in Mount Comfort.
Investors’ money will be used for general operating expenses and to install 260 megawatts of power, or capacity for 11,000 electric vehicle battery packs, at its three Indianapolis facilities, according to an Ener1 news release. A megawatt represents one million watts of power.
“Ener1 has heavily invested in expanding its global manufacturing operations in response to the anticipated demand from the grid energy storage, transportation and small cell markets, allowing us to meet our growth objectives,” Ener1 Chairman / CEO Charles Gassenheimer said in a news release. “We are appreciative of the vote of confidence that our shareholders have placed in Ener1’s management team to execute its business plan.”
New York-based Ener1 develops lithium-ion battery systems for applications such as automotive and grid storage. Its Indianapolis-based EnerDel subsidiary includes a headquarters on Hague Road in Indianapolis, a Noblesville facility and the local manufacturing facility in the Axcess70 business park.
Friday’s announcement had little effect on the Ener1 stock (HEV), which was down 2 cents on the day in NASDAQ trading.
In recent months, Ener1 has announced a flurry of partnerships in different sectors. One partnership involves work on grid storage in Russia. Another deal involves a joint venture with the largest tier-one auto parts supplier in China.
Ener1 announced Friday it will sell $55 million in senior unsecured notes, stock shares and warrants to investment funds led by Goldman Sachs.
Another $10 million in senior convertible notes will be sold to Ener1’s senior partner, ITOCHU Corp. Japan-based ITOCHU is a multinational company that’s involved in domestic trading, import/export and overseas trading of various products.
Ener1 and ITOCHU’s real estate division have teamed up on a pair of projects in Japan that involve residential smart grid energy storage. One project is installed at a major apartment building near Tokyo, while the other project involves working with Mazda to connect electric vehicles, stationary grid storage, solar power and rapid charging infrastructure.
This month, Ener1 will describe its technologies and make its business case to investors. Presentations are scheduled at a number of conferences, including the Credit Suisse Automotive and Transportation Conference, the Cowen Clean Energy Forum, the Wedbush Clean Technology and Industrial Growth Conference, the Deutsche Bank Technology Conference and the Paris Auto Show, the company’s release said.
Friday’s capital raise marks the latest in a series of such moves for Ener1.
Ener1 announced in June it would sell $65 million in stock and warrants to its principal shareholder Ener1 Group, the privately held entity led by Russian industrialist Boris Zingarevich. Zingarevich now sits on the Ener1 board of directors.
Last December, ITOCHU made an investment of $20 million by buying Ener1 stock.
