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Indiana-based EnerDel, which makes advanced lithium-ion battery systems for hybrid and electric vehicles, has announced the signing of a letter of intent with Chinese auto-parts supplier Wanxiang to jointly produce battery systems this year for Wanxiang's existing backlog of customers in China in the passenger and heavy-duty market segments.


EnerDel, which is simultaneously ramping production at its U.S. and Korean facilities, said in a statement Thursday that the deal should rapidly accelerate its business plan by opening up access to the most important electric vehicle market in the world.


Wanxiang is China's largest auto-parts supplier and second-largest private company, with over $10 billion in annual revenue and 30,000 employees. It is also the second-largest stakeholder in Guangzhou Automobile, China's most profitable domestic car company, which has joint-venture partnerships that include Honda, Toyota and Fiat.


In addition to Guangzhou Automobile, current Wanxiang customers include SAIC, Chana, Haima and Yutong, the world's second-largest bus maker. Wanxiang's electric-vehicle division has been supplying the 2010 Shanghai World Expo and will also supply the Asia Games, to be held in Guangzhou in 2010.


"China is the fastest-growing auto market in the world, currently producing 13 million vehicles per year and looking to sustain double-digit growth over the next 10 years," said Charles Gassenheimer, chairman and CEO of EnerDel parent company Ener1.


"They are already ahead of the rest of the world in embracing EV technology, particularly in the heavy-duty sector. Over the next decade, we see demand for as many as one million heavy-duty vehicles. That's a market opportunity worth tens of billions of dollars for the lithium-ion battery industry," he said.
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Tags: Batteries, China, China, Emissions, Fuel Economy, Hybrid, Plug-ins and Electric, China, Electric Cars, Electric Vehicles, EnerDel, EV, Hybrid, Wanxiang

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EnerDel, Chinese Auto Parts Supplier Wanxiang to Co-Produce Batteries for EVs was originally published by Green Car Advisor. Read the full story by clicking here.