ECD/Ovonic Battery Sign Major Battery Project in China
2 September 1999
ECD/Ovonic Battery Sign Major Battery Project in China
TROY, Mich., Sept. 2 -- Energy Conversion Devices, Inc.
("ECD") announced that it and its subsidiary, Ovonic Battery
Company, Inc. ("Ovonic Battery"), signed a historic agreement with Rare Earth
High-Tech Co. Ltd. ("Rare Earth High-Tech") of Baotou Steel Company, Inner
Mongolia, China on August 26, 1999 for a series of major nickel metal hydride
("NiMH") battery projects having a potential value of approximately $100
million.
The projects have been under discussion for more than a year based upon an
initial agreement signed in December 1998 with Baotou Steel, one of the
largest steel companies in China. The signing ceremony was attended by a
large contingent of Chinese government and business leaders and was conducted
in Hohhot, the capital of Inner Mongolia.
The agreement confirms the cooperation between Rare Earth High-Tech and
Ovonic Battery for manufacturing joint ventures and the licensing of advanced
NiMH battery technology, hydrogen storage alloy powders, advance Ovonic nickel
hydroxide materials and production equipment for NiMH batteries. Rare Earth
High-Tech selected Ovonic Battery to be its partner in these projects based
upon Ovonic Battery's leading role in NiMH battery technology.
Stanford R. Ovshinsky, President and CEO of ECD and CEO of Ovonic Battery,
said, "These projects are expected to establish the foundation for a whole new
industry based upon Ovonic technology and Rare Earth High-Tech's enormous
mineral resources. We expect our alliance to open up important new markets in
China previously not available."
These multi-phase projects, spanning several years, are subject to
approvals by the governments of the United States and China and the
finalization of financing arrangements.
Rare Earth High-Tech, the first rare earth company to be listed on the
Chinese Stock Exchange, is the largest producer of rare-earth elements in
China. Established in 1961, Rare Earth High-Tech is located on the grasslands
of Inner Mongolia. The Baiyunebo Mines in this area are estimated to hold
half of the world's rare earth resources. For four decades, Rare Earth High-
Tech has developed many rare-earth products for export to more than 50
countries and regions, including the United States, France, Germany and Japan,
and is the principal supplier of rare-earth raw materials to NiMH battery
makers around the world.
Ovonic Battery was founded by ECD in 1982 to develop and commercialize its
basic proprietary NiMH rechargeable battery technology. All significant
battery manufacturers are licensees of Ovonic Battery's NiMH battery
technology. In 1994, Ovonic Battery and General Motors Corporation formed a
manufacturing joint venture, GM Ovonic, L.L.C., to commercialize NiMH
batteries for electric vehicles and hybrid electric vehicles for sale to the
automotive industry. The Ovonic NiMH battery for electric vehicles is the
first and only battery to exceed 200 miles on a single charge during official
tests conducted by the U.S. Department of Energy.
ECD is a leader in the synthesis of new materials and the development of
advanced production technology and innovative products. Based in Troy,
Michigan, it has pioneered and developed enabling technologies based on
amorphous, disordered and related materials with an emphasis on alternative
energy sources, such as the NiMH battery and thin-film photovoltaics; and
advanced information technologies, such as the phase change optical memory.
This release may contain forward-looking statements within the meaning of
the Safe Harbor Provisions of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are based on assumptions which ECD, as
of the date of this release, believes to be reasonable and appropriate. ECD
cautions, however, that the actual facts and conditions that may exist in the
future could vary materially from the assumed facts and conditions upon which
such forward-looking statements are based.