SOUTHFIELD, Mich., Sept. 18, 2007 – The United States Advanced Battery Consortium (USABC), an organization whose members are Chrysler LLC, Ford Motor Company and General Motors Corporation, today announced the award of a $6.5 million lithium-ion battery technology development contract to Ener1’s EnerDel subsidiary.

USABC awarded the contract in collaboration with the U.S. Department of Energy (DOE) to develop lithium battery technology for hybrid-electric vehicle applications. The 18-month contract, valued at $6.5 million, is the second of a three-phase USABC program and requires a 50 percent cost share.   EnerDel successfully completed Phase I in June.

Under the full, three-phase program, EnerDel is working to develop a fully integrated battery system for use in hybrid vehicle applications.  The USABC program aims to produce a cost-competitive, lithium ion battery that is lighter, smaller and higher in power than existing battery technologies for hybrid electric vehicles.

EnerDel’s Phase II contract involves development focused on scaling up to a production caliber cell, extensive lifetime testing and evaluation, as well as demonstrating the technology in battery modules. 

“We are pleased to award this contract to EnerDel as part of USABC’s battery technology research and development program,” said Don Walkowicz, executive director of USCAR. “The program is essential to advancing the goals of the FreedomCAR and Fuel Partnership, yielding both near and long-term benefits for hybrid-electric and hydrogen-fueled transportation.”

Subhash Dhar, president of Ener1, said, “We are pleased that USABC has awarded the Phase II contract based upon the success we have demonstrated in Phase I.  The contract award recognizes our efforts to date, and the funds will greatly help EnerDel to deliver potentially breakthrough technology in finished product form.”

“We expect to deliver results that will meet and exceed the battery performance requirements of USABC and the DOE, and that will set a very high standard of performance in the United States,” added Ulrik Grape, chief executive officer of EnerDel.

USABC is a consortium of the United States Council for Automotive Research (USCAR).  Supported by a cooperative agreement with the DOE that provides up to 50 percent of the USABC budget, USABC’s mission is to develop electrochemical energy storage technologies that support commercialization of fuel cell, hybrid and electric vehicles. 

The U.S. DOE's overarching mission is to advance the national, economic and energy security of the United States.  DOE’s Office of FreedomCAR & Vehicle Technologies works with industry to develop advanced transportation technologies that reduce the nation's use of imported oil and increase our energy security.  Electrochemical energy storage has been identified as a critical enabling technology for advanced, fuel-efficient, light and heavy duty vehicles. 

Founded in 1992, the United States Council for Automotive Research (USCAR) is the umbrella organization for collaborative research among Chrysler, Ford and GM.  The goal of USCAR is to further strengthen the technology base of the domestic auto industry through cooperative research and development.

For more information, visit USCAR’s Web site at www.uscar.org

About Ener1, Inc.

Ener1, Inc. (OTCBB: ENEI) is an alternative energy technology company that is developing 1) lithium ion batteries for hybrid electric vehicles (HEV) at its 80.5% owned EnerDel subsidiary, 2) commercial fuel cell products through its EnerFuel subsidiary, and 3) nanotechnology-based materials and manufacturing processes for batteries and other applications at its NanoEner subsidiary. 

For more information, visit http://www.ener1.com or call 954-556-4020.

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