Ener1 (HEV) Applies For $480 Million Federal Loan

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11:00:47 am on January 2, 2009

Ener1 (HEV) has applied for a $480 million low interest loan from the government as a part of a federal program called the Advanced Technology Vehicle Manufacturing Incentive Program to spur the development of the next generation of electric vehicles.  The $25 billion program, administered by the Dept of Energy will be used to aid auto companies in the retooling of their manufacturing facilities to improve auto efficiencies.

If the funds are granted, it will allow HEV to double manufacturing capacity to 600K hybrid electric vehicle battery packs per year at its existing plant as well as build a 2nd larger plant capable of producing an additional 1.2 million battery packs by 2015… enough to create 1300 new jobs. 

“A critical new industry is taking shape before our eyes,” said HEV CEO Gassenheimer. “Europe and Asia have committed vast resources to build production capacity, while the U.S. is starting to fall behind. We have the technology, but we lack domestic production capacity. Failure to develop the lithium-ion automotive battery industry would be tantamount to exchanging dependence on foreign oil for dependence on foreign-made batteries.  Our business model suggests that for every $1 of capital investment, we can realize $4 to $6 of annual revenue, depending on product mix.  With this revenue stream, we will be able to repay the loan on a timely basis and will help maintain the competitiveness of the automobile manufacturing industry in the U.S.”

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