Ener1 (HEV) and Wanxiang Electric Vehicle Co. announced that the Chinese government has approved their joint venture to co-manufacture lithium-ion storage energy systems for the China market.  The new company will initially focus on fulfilling existing contracts with State Grid, the largest power supplier in China.  The projects include electric buses and cars as well as grid storage systems.  In the future, the joint venture company could fulfill orders for other customers such as SAIC Motor, Dongfeng Motor, Faw Haima Motor, Chang’an Automobile, Guangzhou Auto and Yutong once it reaches full capacity which is expected to happen within two to three years. 

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"We’re pleased to begin working with our partners at Wanxiang, with whom we’ve developed a strong relationship over the past year, to bring our lithium-ion battery packs and cells to one of the fastest-growing markets," said Charles Gassenheimer, chairman and CEO, Ener1, Inc. "We believe our technical expertise, coupled with Wanxiang’s manufacturing aptitude, will help us quickly deliver exceptional energy storage solutions for customers in China."

This is significant news for Ener1 (HEV), a company that needed a shot of good news to get its stock going again.  Today, the stock surged nearly 25% on the news before giving some back.