New venture targets China's energy storage market

The Chinese government has given the go-ahead for Ener1 Inc. and Wanxiang Electric Vehicle Co. to launch a joint venture to co-manufacture lithium-ion energy storage systems for the China market.

The new company — Zhejiang Wanxiang Ener1 Power System Co., Ltd. — will initially focus on fulfilling existing contracts with State Grid, which is the largest power supplier in China. These projects include providing lithium-ion battery systems for a pure electric-bus project for the city of Qingdao, a pure electric-car project for the city of Hangzhou, as well as a grid energy storage system.

As the joint venture’s capacity increases, it expects to work with other existing customers, such as SAIC Motor, Dongfeng Motor, Faw Haima Motor, Chang’an Automobile, Guangzhou Automobile and Yutong. The joint enterprise aims to be producing the equivalent of around 40,000 electric-vehicle battery packs a year by 2014.

The company’s new leadership team includes Jun Chen, who will serve as CEO; Junqi Du, chief operating officer; and Taison Tan, chief technology officer.