The grant was a chunk from the American Recovery and Reinvestment Act which has an allotted fund of $2.4 billion.

The UltraBattery is a project of CSIRO or Commonwealth Scientific and Industrial Research Organization based in Australia. The battery is capable of delivering more power with lower resistance compared to the latest known technology. This is achieved by forming a single unit using a super capacitor together with a battery made of lead acid.

The company was able to simplify the process of generating and storing power by combining the lead acid fuel cell and the super capacitor which traditionally has been implemented as separate units.

East Penn sees a big market in using this UltraBattery for powering hybrid vehicles which makes use of electric motors or which may utilize regenerative braking. The lifespan of the UltraBattery is also better than NIMH batteries used by some hybrid technologies.

The UltraBattery is expected to reduce costs, improve cycle life, and be more environment friendly since they are easier to recycle compared to Lithium Ion and NIMH batteries.

East Penn was licensed by Furukawa Battery Company to market UltraBattery in North America. The Japanese firm on the other hand got its permission from the Australian CSIRO.

It is up to the U.S. court to decide on a case filed by Paice LLC with the International Trade Commission in Washington, D.C. Paice claims that they own several patents to engines for hybrid vehicles. The complaint serves as a hurdle for importing Toyota models into the U.S. market. Vehicles like the Prius, Camry Hybrid, Highlander hybrid, and some hybrid units of Lexus might be banned if the court favors Paice.

In 2005, Paice edge on the legal battle that Toyota used Paice’s invention in making the drive trains for the RX400h of Lexus, Highlander, and Prius. The next trial in October will explore the infringement claims for the production of the Camry hybrid.

The trials scheduled to be heard in Marshall, Texas are just minor compared to what Paice wants to happen as they filed the case in the nation’s capital. If the trade commission decides to hear what both companies may say, the trial may stretch to about 15 months. If Paice LLC wins, the International Trade Commission can impose the ban for the models which appear to have patent issues.

The Japanese car maker treats this as a major legal battle since these cases can significantly affect their hybrid sales in their U.S. market. It is a Davide and Goliath picture, but the first throw of Paice LLC knocked down Toyota.