EnerDel Looks For $480M Loan To Double Li-Ion Battery Production

EnerDel, of Indianapolis, IN has applied for a $480 million low-interest loan from the Federal government. The company is hoping for the cash infusion to help it reach its goal of doubling production of batteries for hybrid electric vehicles. The company recently announced that it had expanded its production facility to meet rising demand.

The $480 million will come from a new federal program intended to help US automakers and their suppliers. According to the company, if the loan is approved, it will be used to build another production facility that will provide 2,000 jobs. Currently, the company employs about 150 people. The company is facing some competition for the money; 33 other companies have also asked for federal assistance through the program.

EnerDel makes Lithium-ion batteries, mainly for automotive applications, and expects to be the first company to mass-produce Li-ion batteries cost-effectively in the United States. The company also produces Li-ion power cells for military, aerospace, asset tracking and medical equipment.

Last year, the company partnered with Th!nk to produce batteries for that company's Th!nk City electric vehicle. EnerDel provided three prototype 27kWh battery packs for testing in the Th!nk, and will enter volume production very soon. EnerDel first introduced its HEV battery pack in October 2007.

Photo Credit: Th!nk