Old press release. I think Ovonics Battery only licensed, designed, R&D NiMH battery technology. But not making batteries. Sanyo Electric will pay royalty to ECD from selling their Hybrid car batteries to Ford and Honda.
Cobasys is the one that make batteries. Cobasys market is huge because ECD refrained Japanese from entering into North Amercia markets (especially industrial markets).
ovonic.com (10/28/1998)
greencarcongress.com (September 22, 2005)
SANYO AND ECD ENTER INTO A COOPERATIVE VENTURE AND LICENSE AGREEMENT
Oct. 28, 1998 -- Energy Conversion Devices, Inc. (ECD) (NASDAQ:ENER) announced that Sanyo Electric Co., Ltd. (Sanyo) of Osaka, Japan, has entered into a cooperative venture agreement and a patent license with ECD's subsidiary, Ovonic Battery Company, Inc. (Ovonic Battery), for its proprietary nickel metal hydride (NiMH) batteries.
"ECD is pleased to be working with Sanyo, the world's largest manufacturer of NiMH consumer batteries. This new agreement is an important step in our overall strategy to expand volume applications for our advanced technology NiMH batteries," said Stanford R. Ovshinsky, ECD President and CEO.
Sanyo has been granted a nonexclusive patent license under Ovonic Battery patents, which includes the right to sublicense Sanyo affiliates. Under the terms of the strategic agreement, Sanyo will be authorized to manufacture the following: (1) NiMH batteries for two- and three-wheel vehicles in Japan and China for worldwide sale, (2) other-use large NiMH batteries in Japan, and (3) NiMH batteries for four or more wheel OEM vehicles manufactured in Japan for domestic and export sale.
The agreement includes provisions calling for Sanyo and Ovonic Battery to cooperate in the expansion of the vehicle propulsion markets of North America and Europe in conjunction with other ECD partners. "NiMH batteries are the battery of choice among electric vehicle and hybrid electric vehicle manufacturers. Our agreement with Sanyo will expand the use of NiMH batteries in the rapidly-growing electric scooter and bicycle markets," said Robert C. Stempel, ECD Chairman.
The license agreement provides for an up-front payment and royalties on NiMH batteries utilizing Ovonic Battery's patented technology. Sanyo is also purchasing a minority common share position, joining Honda Motor Co. and Sanoh Industrial Co. Ltd. as shareholders of Ovonic Battery. |
