EnerSys Invests in Lithium-Ion Battery Business
EnerSys has purchased a controlling interest in Modular Energy Devices, Inc. (ModEnergy), a two-person development stage company. ModEnergy produces large format lithium-ion rechargeable batteries utilized in aerospace and defense applications as well as specialized standby power and commercial applications.
ModEnergy expects to use the investment to hire 10 to 12 employees and lease additional office space. ModEnergy, launched in 2002, is focused on developing lightweight lithium-ion battery systems as an alternative to traditional lead-acid batteries. The company has developed a cheaper way to assemble lithium-ion cells into batteries and has been backed financially by the Rhode Island Slater Technology Fund since 2003. Slater, which funds young Rhode Island companies, has invested $310,000 in ModEnergy.
John D. Craig, chairman, president and CEO of EnerSys, said “The ModEnergy investment gives us a foothold in the emerging lithium-ion segment of the industrial battery market and supplements our already broad line of battery offerings. This investment is targeted towards our aerospace and defense battery business and will complement our lead-acid and nickel based specialty product lines in the standby and specialty battery markets.”
Sanjay Deshpande, EnerSys vice president for Aerospace and Defense, who will serve as general manager of ModEnergy, added, “EnerSys first contracted ModEnergy to develop a specific product for a military application, which has been tested successfully by a government agency, and we then proceeded to make the investment in ModEnergy. We are confident that ModEnergy will be an excellent springboard for the continued growth of our business in the targeted markets for these products.”
Stephen Spencer Eaves, founder and vice president of Technology for ModEnergy, remarked, “We are excited about having EnerSys as our strategic partner, with its global reach and operations. We have had one of our products under field test in a telecommunications application, which has shown favorable results to date. With this investment by EnerSys, we will move forward with the accelerated commercialization of our technology and products in many markets around the world.”
