ECD/Ovonic Battery Begin Major Battery Project in China
21 April 2000
ECD/Ovonic Battery Begin Major Battery Project in China
TROY, Mich., April 19 Energy Conversion Devices, Inc.
("ECD") (Nasdaq: ENER) announced that required government approvals have been
received and the terms of letters of credit have been finalized in connection
with the joint venture formed by ECD's subsidiary, Ovonic Battery Company,
Inc. ("Ovonic Battery"), and Rare Earth High-Tech Co. Ltd. ("Rare Earth High-
Tech") of Baotou Steel Company, Inner Mongolia, China. The total value of the
equipment, license fees and services to be supplied by Ovonic Battery to the
nickel metal hydride ("NiMH") battery joint venture projects is in excess of
$100 million. Ovonic Battery has started program activities and the joint
venture, Rare Earth-Ovonic Metal Hydride Co. Ltd., will begin construction of
the first production facility in August 2000.
Stanford R. Ovshinsky, President and CEO of ECD and CEO of Ovonic Battery
said, "We are proud to be developing a whole new industry in China based on
Ovonic technology and very pleased that Rare Earth High-Tech has chosen Ovonic
Battery as its joint venture partner in this important endeavor. Ovonic
Battery's technical expertise and Rare Earth High-Tech's vast mineral
resources combine to provide the elements of a truly synergistic partnership."
The overall project calls for Ovonic Battery to supply production
equipment necessary to convert the mineral resources of Rare Earth High-Tech
into value-added products. Ovonic Battery has licensed advanced NiMH battery
technology, and will provide technical training, engineering services and
installation support as well as the manufacturing know-how to produce hydrogen
storage alloy powders, advanced nickel hydroxide materials and batteries.
The Rare Earth-Ovonic Metal Hydride Co. Ltd. joint venture has appointed
its board of directors which includes, in addition to several executives from
China, ECD's and Ovonic Battery's Chairman, Mr. Robert C. Stempel, as vice
chairman, and Ovonic Battery's President, Mr. Subhash Dhar. Ongoing
discussions in conjunction with the joint venture resulted in an initial
agreement in December 1998 which led to an official signing in China in August
1999. Rare Earth High-Tech chose Ovonic Battery to be its joint venture
partner based upon Ovonic Battery's NiMH battery technology.
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. 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. It has pioneered and
developed enabling technologies leading to new products and production
processes based on amorphous, disordered and related materials, with an
emphasis on alternative energy and advanced information technologies. ECD's
web site address is http://www.ovonic.com .
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.