Battery maker Ener1, a DOE grant recipient, goes bankrupt

Electric car battery maker Ener1 filed for bankruptcy Thursday, three years after receiving a $118.5 million grant from the U.S. government.

Ener1 (HEVV), which makes a variety of energy storage devices under different subsidiaries, is the parent company of EnerDel, the car battery division that received the government grant to help build a manufacturing plant in Indianapolis. Unlike bankrupt Solyndra, the advanced solar panel maker that became a lightning rod for critics of Obama's stimulus spending when it closed its factory and liquidated, Ener1 promised its business will proceed as usual.

The company said the "voluntarily initiated" bankruptcy filing won't impact any of its subsidiaries, including EnerDel.

"The restructuring will not adversely impact their employees, customers and suppliers," the company said in a press release, noting there will be no layoffs as a result of the action.

The company blamed the bankruptcy on a slower than expected demand for electric vehicles.

Making a battery to replace oil

Analysts have also said any electric car battery maker faces stiff competition from Asian firms, which are largely considered to be well ahead of the curve due to their long experience making batteries for electronics. Ener1 was thought to offer one of the best chances for an American company to compete in this field.

The company said that's still the case, and that the restructuring will allow it to reduce its debt and free up $81 million for capital spending.

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