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.

Recently, the two partner companies have signed a MOU (Memorandum of Understanding) that sets the parameters of their relationship with each other. The MOU centers on Ener1’s entry into the Japanese market.

ITOCHU has established networks and partnerships with Japan’s automotive community. With this strategic partnership, Ener1’s entry into the new market should be smooth sailing.

This partnership also sets the floor for Ener1’s entry into Japan’s solar power market. This new niche provides further possibilities for Ener1’a already thriving business.

To date, Ener1 is the sole company capable of large-scale lithium-ion production in the United States. It produces enough batteries to support 1.17 megawatt hours of electricity every year. With an even stronger partnership with ITOCHU, Ener1 is looking at a 3.12 megawatt hours expansion this year.

Both companies are shaking on wide expansions in both in the US and Japanese markets. ITOCHU is thinking about producing an equipment line which will give credit to Ener1 in ITOCHU’s own expansions in the Japanese market scene.

With this recent MOU, ITOCHU is hoping to make the company’s international presence even stronger. They hope that the partnership with Ener1 will open the doors into the Tier One supply community and Asian auto manufacturers like Hyundai or Toyota around the globe.