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ECD Awarded Three-Year Contract by NIST

9 October 1997

ECD Awarded Three-Year Contract by NIST

    TROY, Mich., Oct. 9 -- Energy Conversion Devices, Inc.
("ECD") , the originator of nickel metal hydride ("NiMH")
battery technology, announced today that its subsidiary, Ovonic Battery
Company, Inc. ("Ovonic Battery"), was awarded a three-year contract by the
National Institute of Standards ("NIST") under the Advanced Technology Program
("ATP") to develop the next generation of high energy density NiMH batteries
using low-cost magnesium-based hydrogen storage materials.  The total cost of
this 36-month cost-share program is $18.9 million, of which Ovonic Battery and
its team members, including Manufacturing Sciences Corporation, Oak Ridge
National Laboratory, Colorado School of Mines and Iowa State University, will
receive $8.2 million in federal funds.  The balance is to be provided by the
recipients with in-kind contributions.  Ovonic Battery will receive
approximately $5 million in cash during the course of this program.  NiMH
batteries are being manufactured and marketed throughout the world by battery
manufacturers under agreements with ECD/Ovonic Battery.
    The materials used in the current commercially produced NiMH batteries are
rare earth metals and titanium/zirconium-based alloys which are more expensive
than magnesium-based materials.  Magnesium is lightweight, low cost and has
superior hydrogen storage capacity.  Under this NIST-funded program, Ovonic
Battery, based upon its proprietary approaches, is expected to develop
advanced magnesium alloys and production processes for the next generation of
improved high energy density NiMH batteries.
    Stanford R. Ovshinsky, President and CEO of ECD and CEO, Ovonic Battery,
noted that the alliance with NIST under this ATP program further strengthens
the U.S. technological leadership in the rapidly growing market for
rechargeable batteries with applications in electric vehicles, portable
electric power in consumer electronic and communication devices, industrial
uses and in the storage of electricity generated from sustainable energy
systems such as photovoltaics.
    ECD, the original developer of nickel metal hydride technology, is a
leader in the synthesis of new materials and the development of advanced
production technology and innovative products.  ECD has pioneered the
development of products and production technology based on amorphous,
disordered and related materials, with an emphasis on alternative energy and
 advanced information technologies.  ECD's web site is http://ovonic.com.

SOURCE  Energy Conversion Devices, Inc.