ENER1 and Volvo Cars Team-Up Again to Provide Lithium-Ion Power for the New C30 Battery Electric Vehicle

ENER1, Inc. (Nasdaq: HEV), developer and manufacturer of advanced lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles, is teaming-up with Volvo Car Corporation to provide American-made lithium-ion batteries for the Volvo C30 Battery Electric Vehicle prototype, being unveiled in Gothenburg, Sweden today. The battery is designed and developed in the U.S. by EnerDel, Inc., Ener1’s U.S. battery subsidiary. This follows the recently announced collaboration with Volvo on the plug-in hybrid V70 demonstration vehicles being road tested in Europe this fall, which also feature EnerDel lithium-ion batteries.

The C30 Battery Electric Vehicle is part of Volvo Car Corporations DRIVe Towards Zero Strategy and is a mobile test bed proving that through intelligent packaging and technology, a pure electric vehicle can be great to drive while not compromising on factors such as luggage space and interior comfort.

It is designed as a zero emission, city commuter car covering the day-to-day mobility needs of more than 90 percent of European commuters. The 150km (95 mile) range and packaging efficiency of the vehicle is derived in a large part from the highly efficient lithium-ion battery, designed and manufactured by EnerDel, who produces some of the highest energy density battery cells in the world. The EnerDel battery for the C30 battery electric vehicle (BEV) is custom made and is a ‘split battery’, with an energy content of over 24 kWh nominal energy, of which 22.7 kWh is used to power the car.

"We are delighted to be partnering with Volvo again on this exciting development project which aims to test the technical solutions of a full Volvo battery electric vehicle, in the highly desirable Volvo C30," said Ulrik Grape, President, Ener1 Europe. "We are developing a close working relationship with Volvo and are collaborating intimately on integration of the battery and safety in these advanced vehicle concepts."

The new project follows a series of announcements from Ener1 in the last month including the appointment of a new President for EnerDel and a further strengthening of the senior management team, the creation of a new European Division, acquiring a leading shareholder position and securing a long term supply contract with Think Global, and being selected to receive a $118.5m in Federal Grant Funding to double production capacity in the US.

Lithium-Ion Battery Leader Ener1 Takes Stake in Electric Vehicle Maker Think Global

Ener1, Inc. (Nasdaq: HEV) will take the lead among a group of investors that plans to inject $47 million of equity funding into Think Global AS, the Norwegian electric vehicle producer. Ener1, Inc. is the parent company of EnerDel, a leading manufacturer of advanced lithium-ion automotive battery systems based in Indianapolis and an existing supplier to Think.

Ener1, Inc. has agreed to invest approximately $18 million in three tranches, and convert an additional $3.0 million in debt for convertible preferred shares of Think, effectively transferring the 10% equity stake held by Ener1 Group to Ener1, Inc. Once all stages are complete, Ener1, Inc. will hold approximately a 31-percent stake in the company. Other stakeholders in the deal include Investinor, the Norwegian sovereign investment company.

"Automakers need made-to-order performance combined with the pricing and availability of an off-the-shelf system," said Ener1 Chairman and CEO Charles Gassenheimer.

About Ener1, Inc.

Ener1 develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles. The publicly traded company (NASDAQ: HEV) is led by an experienced team of engineers and energy system experts at its EnerDel subsidiary located in Indiana. In addition to the automobile market, applications for Ener1 lithium-ion battery technology include the military, grid storage and other growing markets. Ener1 also develops commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary.

In the automotive industry and the energy sector as a whole, we are seeing an important paradigm shift. Ener1 is at the forefront of performance and efficiency-harnessing technologies for the automotive industry and beyond.

Spearheading the national movement towards domestic high-performance battery production, Ener1’s business model is backed by strong research, development and production capabilities, and a prominent roster of strategic partnerships. The company is able to maintain end-to-end capabilities that are positioning it as an energy storage leader. In addition, our dynamic management team and board of directors bring the experience and expertise necessary to make our goal of becoming the leader in the energy storage space a reality.

At the heart of our business is our pioneering and proprietary technology, developed by some of the industry’s brightest talent and produced at our state-of-the-art facility in America’s heartland. Ener1’s manufacturing plant in Indiana is the only commercial-scale manufacturer of automotive-grade, lithium-ion systems in the United States.