All: Positive announcement today re: ERC's battery technology:
Wednesday December 3, 7:34 am Eastern Time
Energy Research Corp. Signs a Memorandum of Understanding For Electric Vehicle Battery Production in The People's Republic of China
DANBURY, Conn.--(BUSINESS WIRE)--Dec. 3, 1997--Energy Research Corporation (AMEX: ERC - news) today announced that it has signed a memorandum of understanding (MOU) to provide a license for its high energy, cost effective, electric vehicle battery technology to a partnership (to be) formed between the Nan Ya Plastic Corp. Taiwan (the largest subsidiary of The Formosa Plastics Group), Xiamen City in Fujian Province of The People's Republic of China and ERC.
The MOU anticipates a license which will grant the partnership rights to manufacture and sell ERC's proprietary rechargeable, nickel-zinc battery for electric and hybrid electric vehicles within China and Taiwan and certain countries in Southeast Asia. Under certain conditions, the contemplated license may be extended beyond these territories. The license, subject to final negotiation, is expected to provide ERC with license and royalty income as well as an equity position in the partnership in exchange for its battery technology. The MOU was signed following negotiations with Chinese government officials representing Xiamen City of Fujian Province and officials of Nan Ya Plastics Corporation. Signing of a licensing agreement, subject to final negotiations, is scheduled to be completed in Xiamen City during the first quarter of 1998.
''We are pleased to be associated with Formosa Plastics and Xiamen City in introducing this innovative technology to China's rapidly expanding automotive industry. We believe that ERC's rechargeable nickel-zinc battery technology represents a major advance over existing batteries. Our initial tests indicate that it could substantially increase the mileage range over currently available lead acid batteries. Our tests also indicate that the battery will have substantially lower material costs per kilowatt hour than other currently available 'advanced' rechargeable batteries. Other key characteristics demonstrated by our battery, which we believe will make our battery technology especially well suited for a variety of hybrid electric vehicles and all electric vehicle propulsion systems, include a combination of high power and high energy storage per unit weight, a deep discharge capability and high cycle life,'' said Jerry Leitman, President of Energy Research Corporation.
Deputy Mayor of Xiamen Municipal Government, Mr. Rong Wang said, ''Xiamen City, as one of the exemplary cities for environmental protection in the People's Republic of China, will make every effort to pursue high efficiency ''green'' battery powered vehicles for replacing gasoline engine powered vehicles. We believe the sincere collaboration between Xiamen, Formosa Plastics and ERC will succeed in the rechargeable, Ni-Zn battery project. Xiamen Municipal Government will provide every possible support to the joint venture of development and manufacture Ni-Zn battery in Xiamen City.''
Mr. Chin-Lung Chang, Vice President of Nan Ya Plastics Corp. (Formosa Plastics Group) said, ''The Formosa Plastics Group is interested in Nickel- Zinc battery technology due to its intention of developing a hybrid electric vehicle,'' According to ERC's data and our discussion, Ni-Zn battery is a potential candidate for HEV battery. We intend to visit ERC's facility in December 1997. We will discuss more details and continue negotiations of the final agreement after this visit.''
''We believe this is an important step toward providing the world within the first practical electric vehicle,'' said Dr. Bernard S. Baker, Chairman of ERC. ''The combination of our nickel-zinc battery technology, the battery and automobile manufacturing capabilities
available in Xiamen City and at the Formosa Plastics Group, the related technologies and manufacturing expertise and resources of Nan Ya Plastics Corp. have all the ingredients to make this a successful venture. Environmental and energy resources concerns demand that electric vehicles become a significant factor in transportation. We believe our battery solution is superior to other available technologies in this application.''
The MOU agreement was reached at the second meeting of the parties which was held in Xiamen following an initial meeting with a delegation from Fujian province in July a ERC headed by Vice Governor Jianshuang Wang. A third meeting between the signatories to the MOU is scheduled for mid December at ERC for further negotiation.
Xiamen City, with a population of 1.2 million, is located on the southeastern coast of Fujian Province. As one of China's first four
Special Economic Zones it has been granted the right to manage its own economic affairs while offering preferential investment treatment to foreign enterprises. Xiamen's industrial base is expanding rapidly. Xiamen City's automotive company produces 30,000 cars and trucks per year.
The Formosa Plastics Group of Taiwan had 1996 sales of $10.9 billion dollars (US) from its 11 companies. The Formosa Plastics Corporation is the world's largest producer of polyvinyl chloride (PVC) with a capacity of 1 million tons in Taiwan and 930,000 tons in its U.S. subsidiary. The U.S. subsidiary includes activities involving natural gas refining, gas transmission pipelines and petrochemical production facilities. Formosa Plastics Corporation provides PVC resin and acrylic fibers to the largest company in the group, Nan Ya Plastics Corp., which accounted for $3.2 billion in sales in 1996. Various subsidiaries of Formosa Plastics Group are involved in battery and electric vehicle developments.
Energy Research Corporation, headquartered in Danbury, CT., is an internationally recognized leader in the field of electrochemical technology for producing and storing electricity. ERC is developing and commercializing its direct fuel cell and nickel-zinc batteries in cooperation with government, electric utility and major industrial organizations worldwide.
This press release contains forward looking information {etc. boilerplate] |
