Sanyo and ECD Enter Into a Cooperative Venture and License Agreement
TROY, Mich., Oct. 28 /PRNewswire/ -- 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.
Sanyo is an international organization consisting of 76 manufacturing companies, 33 sales companies, and 24 other companies with operations in 27 countries employing more than 70,000 people. Its consolidated annual sales are over $17 billion. Sanyo manufactures a broad range of electronic products, including video and audio equipment, home appliances, industrial and commercial equipment, information systems and electronic devices, batteries and other products. |
