Delphi Develops Battery Venture

Delphi Corp. has combined its production of lithium batteries into a new company called EnerDel run with Ener1 Inc., a Florida-based supplier of the same type of batteries. (See related story on page 3.)

EnerDel will develop high-energy, long-life lithium batteries and target diverse markets, such as power tools, automotive and military. It will be based in Fort Lauderdale, Florida, current home of Ener1.

“Our battery cell production skills are complemented by Delphi’s design and production team, cell packaging, systems design and large-scale production expertise,” said Kevin Fitzgerald, chairman and chief executive officer for Ener1.

Delphi will own a 19.5 % stake in the new company, with Ener1 holding the balance. Troy, Michigan-based Delphi also is getting preferred stock in Ener1, with a 90-day option to exchange that for Ener1 common stock at $1.15 per share, and warrants for the purchase of up to 7 million shares of Ener1 common stock. Ener1 stock has been trading around 72 cents per share.

Additionally, Ener1 is expanding its board of directors to six persons, with Delphi securing the right to be represented by the sixth position.

Delphi is the world’s largest automotive parts supplier and one of the Dayton, Ohio, area’s largest employers with 6,700 people.