New lithium-ion battery manufacturing plant to double EnerDel's US capacity

This investment addresses the anticipated demand for advanced battery systems used in both automotive and stationary smart grid applications.

Backed by a mix of private funds and public incentives, the new facilities will more than double EnerDel's US production capacity and create 1,400 new jobs according to the manufacturer.

The announcement came during a special unveiling at the EnerDel facility of the new EnerDel powered C30 electric vehicle platform for Volvo Cars, the best selling platform within Volvo.

State and local economic development incentives are valued at USD 69.9 million, which comprises a state incentive package of USD 21.3 million and Hancock County package valued at USD 48.6 million. EnerDel has also applied for an additional USD 9 million from Federal Government development programs.

The new plant will give EnerDel the capacity to produce battery packs for approximately 600,000 hybrid electric vehicles, or 60,000 battery electric cars.

It will be financed through a USD 118.5 million grant awarded under the federal stimulus package under a 50:50 cost-share program, of which EnerDel plans to spend USD 60 million in 2010. The project represents just the first stage of the company's expansion plans in the Indianapolis area.

"Indiana is fast becoming the Silicon Valley of the 21st Century auto industry," said Charles Gassenheimer, chairman and CEO of EnerDel parent company Ener1. "We're here because of the talent, the automotive industry experience and the remarkable network of electric drivetrain companies that call this state home.

This immediately follows our electric vehicle partner Think's announcement to establish their U.S. manufacturing facility here, in Indiana."

EnerDel will immediately begin to occupy more than 211,500 square feet of newly-constructed space in the Axcess70 industrial park in Mt. Comfort, Indiana, with a two year option to purchase the entire facility which is comprised of 423,000 square feet.

The company is currently in the process of hiring new engineers, production associates and other staff as build-out progresses.

Axcess70 is a 153 acre industrial and distribution park developed by a joint venture between Browning Investments, Inc. and Real Estate Capital Partners and consists of two speculative buildings located just north of the I-70/Mt. Comfort Interchange, which is currently being expanded.

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