Press Release

United States Advanced Battery Consortium Announces Second Phase Battery Research for Electric Vehicles

10/28/96

USABC Moves Into Second Phase of Electric Vehicle Battery Research

DEARBORN, Mich., Oct. 24 -- The United States Advanced
Battery Consortium (USABC) and the U.S. Department of Energy (DOE)
announced a $106 million agreement today to continue landmark research
and development of advanced batteries for electric
vehicles. U.S. Secretary of Energy Hazel R. O'Leary and USABC Chairman
Robert L. Davis announced the Phase II agreement at the headquarters
of the United States Council for Automotive Research (USCAR) in
Dearborn.

"Today's agreement reflects the Clinton administration's continuing
commitment to this unique public-private partnership," O'Leary
said. "Developing batteries to power electric cars will not only allow
them to compete with gasoline-powered vehicles, but it will also help
to preserve our environment and reduce our dependence on foreign oil."

Phase II allows USABC to continue reducing the costs of mid-term
electric vehicle batteries and forge ahead with the development of
long-term battery technologies that were identified and developed as
part of the historic Phase I agreement, signed in 1991 by the DOE and
the U.S. domestic automakers.

"In Phase I we identified Nickel Metal Hydride (NiMH) as the most
promising mid-term technology and focused on helping key battery
developers demonstrate manufacturing capabilities," Davis said. "We
also identified lithium-based batteries as the long-term solution to
competitive electric vehicles and have worked successfully to
demonstrate technical design feasibility for these technologies."

"With the additional Phase II support, USABC will continue testing the
safety and durability of NiMH batteries in real-world situations as
well as work to develop manufacturing processes that constantly strive
to lower cost and enhance quality," added Davis.

The support also will allow the consortium to take long-term
lithium-based technologies through the same manufacturing process
feasibility proveout that NiMH went through as part of Phase I.

"We are striving to insure a leadership role for the United States in
the commercialization of advanced batteries," Davis said. "Phase I
clearly set the U.S. ahead of the rest of the world and now with Phase
II we are taking the next step needed to cultivate this potential new
industry here in the United States."

USABC is one of 12 research and development consortia that make up
USCAR and is responsible for developing advanced battery systems that
will provide increased range and improved electric vehicle
performance.  USABC members and participants are Chrysler Corp., Ford
Motor Co., General Motors Corp., the Electric Power Research Institute
(EPRI) and the U.S.  Department of Energy (DOE).