Pentagon Collaboration is Driving Lithium-Ion Battery Innovation That Has Broad Military and Commercial Potential

Ener1, Inc. (AMEX:HEV) maker of advanced lithium-ion battery systems for the next generation of hybrid, plug-in hybrid and electric vehicles, today announced the transition to phase two of its research and development contract with the U.S. Department of Defense (DoD). The contract is designed to develop high energy, high performance batteries for unmanned aerial vehicles (UAVs).

Under the new agreement, Ener1's lithium-ion battery subsidiary EnerDel has been awarded $1.46 million to develop a complimentary anode for the UAV battery pack to increase the cruising time of the vehicle. The phase two award comes in addition to a $4 million contract in September, 2008, to produce lightweight, high-performance battery solutions for real-time tracking of military assets in harsh climates and phase one of the UAV program.

"The DoD is one of the most demanding customers there is. Our collaboration is pushing the capabilities of EnerDel's battery cell technology," said EnerDel CEO Ulrik Grape. "We believe the market opportunities for developing advanced battery technologies for the military are substantial and will create research and development synergies with our core business of supplying complete systems solutions for the automotive industry."

With the successful completion of phase two, EnerDel expects to increase the theoretical cruising time for the UAV from fifty three to eighty one minutes. The timeline for the project completion is eighteen months.

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