Lithium - ion Business

(March 2006) China BAK Battery, Inc. signs manufacturing agreements with Lenovo Group Ltd. and A123 Systems. BAK has supplied Lenovo with Lithium-ion battery cells for cell phones since August 2005 and the new agreement will expand the development of new batteries for Lenovo in the portable notebook market. High volume production of A123 Systems nano-phosphate Lithium-ion batteries has already begun.

BAK raised approximately US$60 million in 2005 which enabled the company to expand its manufacturing facilities. Already cell phone battery production capacity has increased to 22 million pieces per month from 15 million pieces.

(July 2005) Degussa AG of Germany and ENAX of Japan establish joint venture in China to manufacture highly-developed electrodes for Lithium-ion batteries. The new company, “Degussa Enax (Anqiu) Power Lion Technologies. Co., Ltd.” will begin business operations as soon as all approvals have been obtained from the Chinese authorities

With the SEPARIONR battery separator, Degussa has developed a new type of ceramic membrane that improves the performance of large-volume Lithium-ion batteries. This improvement is said to make these batteries safer.

Degussa sees phenomenal growth in the global Lithium-ion battery materials market. Double digit growth was experienced in 2004 and currently amounts to US$1.2 billion. By 2015, the company anticipates the market will reach about US$4 billion.

Johnson Controls, Inc. (JCI) launches an advanced Lithium-ion battery development laboratory to design, develop and test power-storage and power-management concepts based on Lithium-ion technology. The Company believes Lithium-ion technology is likely to replace Nickel-metal hydride as the battery technology of choice in hybrid-electric and electric vehicles in the future. Gregg Sherill, group vice president and general manager -Battery for the Automotive Group of JCI, stated, “We believe that Lithium-ion batteries will be the wave of the future.”

Current company research and development efforts on Lithium-ion technology focus on cathode materials, new cell designs for better thermal management, modular designs that enable the integration of safety technologies, and cell balancing to ensure safe operation as well as extended performance and cycling.

In 2004, JCI was grated a contract for Lithium-ion battery development by the United States Advanced Battery Consortium (USABC). The work in this contract involves developing an abuse-tolerant, Lithium-ion battery offering extended life and significantly improved power-to-weight performance vs. current hybrid-battery technology.

Industry projections indicate that sales of HEVs (Hybrid Electric Vehicles) in the U.S. and European markets could reach six million units within a decade.

Valence Technology launches its batteries in three new Segway products for 2005. Valence’s SaphionR technology doubles the range of the Segway HTi series model, allowing it to travel up to 24 miles on a single charge.

The Lithium-ion battery using Valence’s Saphion technology is based on a phosphate chemistry which contains no toxic heavy metals, has enhanced safety and operates at temperatures as low as 140 Fahrenheit.

Keio University’s Electric Vehicle Laboratory works with Japanese companies to develop large-capacity Lithium-ion batteries for mass production. The research budget of US$7.7 million will be funded by KDDI Corp, Daiwa House Industry Co. and Takenada Corp. The goal is to lower the cost of large Lithium-ion batteries to 1/20th of the current levels. The batteries will be used in transportation applications but could also be used in stationary applications in buildings.

Saft America delivers a record 2.5 millionth BA 5590 Lithium-based battery to the U.S. military. Tom Alcide, General Manager of Saft’s Specialty Battery Group said, “Our portable Lithium batteries are fielded more than any other power source in the conflicts in Afghanistan and Iraq - just as they were during the Gulf War.” The BA 5590 battery is the U.S. military’s most widely used portable energy source, powering many types of communications devices used in combat throughout the armed services.

There are three versions of the BA 5590 battery: Lithium-sulfur dioxide, Lithium-manganese dioxide and Lithium-ion. However, the primary product relied upon by the U.S military is the Lithium-sulfur dioxide battery. This battery has been powering communication applications over the past 10 to 15 years. It is the only Lithium technology currently available that has a proven track record in combat situations.

EaglePicher Inc. acquires controlling interest in a Lithium-ion battery manufacturer, Kokam Engineering Co. Ltd. of South Korea. EaglePicher signed an exclusive agreement to license Kokam’s technology for government applications worldwide. Kokam will distribute selected EaglePicher products in northern Asia.

The USAF Munitions directorate with Compact Power Inc., designed and built, in less than 45 days, a rechargeable Lithium battery pack to power the Special Operations Command Pointer Unmanned air vehicle. Rechargeable packs will operate for 400 missions, reducing costs by a factor of 60. Recharge time will be about that of one mission so that upon retrieval of the vehicle, an alternate pack will be ready to power it for a next mission. Chargers run from a variety of commonly available ac and dc power sources.

(May 2004) Hitachi and Shin-Kobe Electric Machinery Company consider joint venture to market, develop and manufacture Lithium-ion batteries for HEVs (Hybrid Electric Vehicles). The two companies formed the world’s first group to mass produce a Lithium-ion battery for electric scooters.

(April 2004) Matsushita Battery Industrial Co. will make Lithium-ion batteries in China. The plant in Wuxi, southeastern China will be able to produce 3 million batteries per month; these batteries will be used in mobile phones. Matsushita Battery’s total monthly output, including those made in China, will be 38 million units.

(Sept. 2003) Ener1 receives order for batteries from Nissan Motor Company. Nissan is interested in Ener1’s new electrodes which are based on a new lithium battery concept that involves a nano-structure process. Based on this technology, batteries increase their discharge rates by up to 25 times and have increased cycle life, also. Smaller size and weight are other positive features of the new batteries.