

As we have previously discussed, the U.S. government awarded research grants to 5 U.S. top lithium-ion battery producers for developing plug-in electric car battery packs. We have had previous discussions with executives from A123 as well as Compact Power Inc., the two companies with Chevy Volt contracts.
Now, I had the chance to chat with Mr. Charles Gassenheimer. He is the Vice-Chairman of Ener1, which is the parent company of EnderDel, one of the remaining three companies who are getting government grants. They have been in the news lately with their claim to the $1500 battery pack (more on that later). Some funding for the research is also coming directly from GM through the U.S. Advanced Battery Consortium (USABC).
At the end of this post you can hear the entire audio of our discussion.
Mr. Gassenheimer tells us that Ener1 owns 80.5% of EnerDel, which is based in Indianapolis, Indiana and has 42 employees.
He clarifies that the government announcement is actually a Phase 2 purchase order from the big 3 automakers to buy cells from EnerDel. He also noted that EnderDel is the only one who has actually delivered cell samples to the USABC for testing at one major national laboratory.
He also indicates that when the cells were tested, they met all 30 end of life targets for the big 3, including cycle life, thermal performance, and power and energy density, the most important areas. He further tells us that the cells actually exceeded thermal performance expectations by 50%.
Specially, by thermal performance, he noted that EnerDels cells never heat up above 33 degrees C, indicating that they only need to be air-cooled as opposed to his competitors (which can get to 70-90 degrees C) which require more expensive liquid cooling.
EnderDels cell use lithium titanate in a spinel structure for the anode and a manganese spinel structure for the cathode. He feels this recipe produces a tremendous amount of efficient power, that doesn’t requires as much voltage, for example, as A123s, and is more power dense.
He clarifies that the EnerDel $1500 battery pack price widely discussed, is actually for a hybrid vehicle (HEV), not a PHEV. The PHEV pack pricing has not been announced yet and could be more expensive. He also tells us the $1500 lihtium-ion HEV battery is cheaper than the typical NiMh pack of $4000.
He expects to have his HEV battery packs in cars in 2009, and admits that EnderDel has been in discussion with several car companies he wont publicly name.
He also admits EnerDel was one of the initial 13 companies making a proposal to GM 11 of whom was not chosen. He says the reason why EnerDel wasn’t chosen was because they didn’t have a PHEV program in place at the time, but they do now. He also noted that EnerDel is a partner with Delphi, but now is in a position where they can bid on their own, and have already developed their own fully integrated and fully operational pack in Indianapolis.
He tells us that Li-ion for cars will be a 50 to 60 billion dollar industry, the race is “long from over”, and that the big 3 should want to talk to them.
He thinks the leasing model for li-ion batteries makes sense, to make purchasing a PHEV a positive return on investment for the consumer.
He tells us the EnerDel cells currently cost $500 per kWh, but is confident a goal of $250/kWh can be reached, and theirs will be the most efficiently priced cell on the market.
EnderDels competitive edge is due to manufacturing techniques developed in conjunction with Japanese partner Itochu, and the fact that the cells are made in the United States in Indianapolis. He feels his company will avoid the excess cost of putting Asian-made batteries on a boat to get to Detroit. He noted A123s manufacturing base is in China, CPIs in Korea, and Saft/Johnsons in France.
He says EnerDel plans to install their current packs in cars within the next 3 months to do testing, but wont say whose cars they’re going in. Very interestingly he expects to be in a position to sign a contract with a car company “before the end of the year”.
He says using li-ion in HEV will increase mpg because of its power, including amping highway driving, and expects impressive data. He also mentions putting the packs in a Prius.
In terms of risk of thermal runaway, he feels EnerDels cells avoid this by having a flat pancake shape and specifics of chemistry.
He mentioned his technology is 5 years in the making and is very excited about the massive prospects for the future.
Also we discussed the fact that Ener1 Inc is actually a publicly-traded company, allowing the individual investor the opportunity to play in this burgeoning and soon to be massive market (OTC BB: ENEI)