EV-Motoring: Continental Invests in Enax to Expand Own Lithium-Ion Technology

Focus on next generation of lithium-ion batteries for hybrid drives

REGENSBURG, Germany and BERLIN, June 3, 2008; The international automotive supplier Continental has acquired shares in the Japanese lithium-ion specialist Enax. Enax is a highly recognized technology expert for the development and production of high-energy and high-performance lithium-ion cells for hybrid and electrical vehicle batteries. The two partners have agreed upon an exclusive cooperative venture for the development of lithium-ion cells especially for future hybrid and electric drives in automobiles. Continental acquires a 16 percent holding in Enax. Together, the two intend to improve safety, service life and performance of lithium-ion batteries even further.

"In line with our evaluation criteria, Enax offers the broadest range of know-how in high-performance lithium-ion cells, regarding the cell materials as well as cell design," says Continental Executive Board member Dr. Karl-Thomas Neumann.

As an independent think tank, Enax can already provide more than ten years of experience in the field of lithium-ion cells for automotive applications, including cell technology and the chemical composition in particular. "With this cooperation, we are pooling our innovative strength and creating the technological basis for high-performance energy storage devices of the next generation," explains Jorg Grotendorst, head of Continental's Hybrid business unit. Grotendorst will in the future be a member of the Board of Directors of Enax.

Enax was founded in 1996 by the current President and CEO, Dr. Kazunori Ozawa. The company, which is headquartered in Tokyo and has manufacturing facilities in China and Japan, employs more than 80 people, about half of who work in research and development. The development center is located in Yonezawa in the northern region of Japan. Enax holds a number of patents relating to the production, cell materials and safety technology of the batteries. Fiscal 2006 sales amounted to 10.5 million US dollars.

Continental has been developing components such as power electronics, electrical machines and energy storage devices for hybrid drives already since the mid 1990s. As the world's sole hybrid system supplier not tied to an auto manufacturer, Continental has been mass producing a mild hybrid since 2003. With its hybrid battery pack the company sets new standards in getting eco-friendly hybrid technology onto the market faster and at a more attractive cost. Continental will launch first-time volume production of a high-performance lithium-ion battery for the Mercedes S 400 BlueHYBRID at the end of this year.

With targeted annual sales of more than euro 26.4 billion in 2008, the Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, powertrain and chassis systems and components, instrumentation, infotainment solutions, vehicle electronics, tires and engineering elastomers, the corporation contributes to enhanced driving safety and global climate protection. Continental is also a competent partner in networked automobile communication. The corporation currently employs approximately 150,000 at almost 200 locations in 36 countries.

Within automotive supplier Continental AG, the Powertrain division integrates innovative and efficient powertrain system solutions into vehicles. This boosts performance and enhances ride comfort while reducing consumption and emissions. As partner to the automotive industry, the division develops and produces a wide-ranging product portfolio at over sixty locations worldwide, beginning with gas and diesel injection systems and engine and transmission controls and extending through to components and systems for hybrid drives. The Division currently achieves annual sales exceeding euro 5 billion (based on figures for 2006) with a workforce of more than 26,000 employees.