Ener1 Inc. (HEV) Soars after Signing Strategic Joint Venture Agreement (HEV)
Ener1 Inc. (NASDAQ: HEV) shares are soaring after the company today reported that it signed a strategic joint venture agreement.
Ener1 today reported that it entered into a joint venture agreement with Wanxiang Electric Vehcile Co. Ltd., a unit of the China-based Wanxiang Group Corporation, to co-manufacture Li-ion cells and battery packs for the fast growing Chinese market.
Ener1 said that the joint venture will see the coming together of cutting-edge American technology and advanced Chinese manufacturing capability to produce battery systems for Wanxiang’s several light-and-heavy-duty automotive and power grid customers for delivery in 2011.
The joint venture will be called Zhejiang Wanxiang Ener1 Power System Co. Ltd and will utilize Wanxiang Electric Vehicle’s existing 553,000 square foot facility in Hangzhou.
Following the announcement, shares of Ener1 soared in early trading today. At last check, the shares were up 32.07% to $4.86 on above average volume of 14.18 million. Ener1 shares touched a 52-week high of $5.90 today.
Ener1 is a New York City-based company, involved in the business of designing, developing and manufacturing rechargeable lithium-ion batteries and battery systems for energy storage. The company’s end markets include transportation, stationery power for utilities and renewable energy.
