C&D Technologies Awarded Contract for Development of Large-Format Lithium-ion Batteries

 The $19 million contract will span an estimated four year period from September 18, 2009, with the objective of developing large-format lithium-ion batteries that can meet the growing needs of the US Army for light-weight, high power density battery systems. The technologies developed under the program will also be utilized in meeting the needs of C&D’s commercial customers, with potential application to large-scale grid-energy storage, renewable energy applications and distributed power for telecommunications systems, in addition to broader application in other branches of the military. The result will be a sustainable, domestic US source for high performance, large-format lithium-ion batteries, with the potential for achieving economies of scale to ensure affordability in a range of military and commercial applications. These new advanced lithium-ion battery systems will be developed and produced in C&D’s Milwaukee, Wisconsin operations, which has been a focus for renewed investment for the company over the last two years.

With power demands for electronic devices growing at a rapid rate, the US Army requires new batteries that provide greater energy density and are lighter than those in the field today. The market for large-format lithium-ion batteries is expected to grow as more military systems utilize large-format lithium-ion batteries to provide backup and supplemental power to the many deployed electronic systems supporting US soldiers and their equipment in the field. These systems provide vital information and support for the military infrastructure deployed in foreign lands.

The funding profile for the contract includes an initial installment of approximately $1.6 million allocated in the Federal Government Fiscal Years 2008 and 2009, followed by $4.96 million for expanded development in the Fiscal Year 2010 Defense Appropriations Bill, passed by Congress and signed into law by the President in late December. The balance of the contract funding is anticipated over the remaining two years of the program, pending future approval by Congress. The U.S. Army Research, Development and Engineering Command Contracting Center, Adelphi, Md., is the contracting agency (number W911QX-09-C-0107).

"This contract will allow C&D Technologies to establish a world class research and development facility in Milwaukee, Wisconsin, including pilot production capability dedicated to large-format lithium-ion batteries, and will establish a domestic manufacturing base for C&D designed lithium battery systems," said Dr. Jeffrey Graves, President and CEO of C&D Technologies. Dr. Graves continued, "C&D Technologies is grateful for the steadfast support of the Wisconsin Congressional delegation, particularly Senator Herb Kohl and Congresswoman Gwen Moore, whose leadership was crucial in securing these funds; this lithium-ion battery development program will support the creation of new, sustainable, high value ‘green collar’ manufacturing and R&D jobs at our Milwaukee location." Dr. Graves concluded, "Under the local leadership of Mayor Tom Barrett, the City and State have worked together to create an environment for investment and growth in traditional manufacturing businesses that have inspired C&D to invest heavily for the long term future of its energy storage business in Milwaukee."

Commenting on the new contract award, Congresswoman Moore stated, "Congratulations to C&D Technologies. I am thrilled because this project means one thing for my district: high tech jobs." Congresswoman Moore concluded, "This contract will produce the jobs of the future, and it has the potential for significant commercial application for years to come."

C&D Technologies provides power solutions and services for the telecommunications, uninterruptible power supply (UPS), switchgear and control (utility), and emerging markets. C&D Technologies engineers, manufactures, sells and services fully integrated reserve power systems for regulating and monitoring power flow and providing backup power in the event of primary power loss until the primary source can be restored. C&D Technologies’ unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. C&D Technologies is headquartered in Blue Bell, PA.