INDIANAPOLIS — China’s largest auto-parts producer announced Thursday it will enter a joint venture with Indiana battery-pack maker EnerDel in a deal that could double the Hoosier company’s work force.
The joint venture will produce lithium-ion battery systems for existing customers of Wanxiang, which serves the fast-growing electric car industry in China.
The announcement was made by EnerDel CEO Charles Gassenheimer in Greenfield, on the eve of a summit between Indiana auto-part makers and the largest delegation of Chinese auto executives to visit the U.S.
EnerDel had already announced plans to hire 1,400 new workers in its central Indiana plants as it ramped up production of battery packs for electric-car maker Think. The new joint venture with China could double that number to 3,000, the company said.
“There is considerable demand for electric vehicle technology, especially for heavy-duty bus applications, that we believe could equate to a 1 million unit or a $100 billion revenue opportunity over the next 10 years,” Gassenheimer said at a press conference Thursday. “Working with such an established and qualified partner is a tremendous opportunity for EnerDel, bringing unparalleled access to its customer base in China and beyond.”
EnerDel is the first producer in the world to make 600-pound lithium-ion batteries scaled for automobiles. The company is made up in part of former Delphi and Remy business units that were spun off in the 1990s by General Motors.
Wanxiang is the second-largest privately owned company in China. It has an electric-vehicle division that produces hybrid and electric buses. Wanxiang is also the second-largest stakeholder in Guangzhou Automobile, which has joint ventures with Toyota, Honda and Fiat.
Indiana Gov. Mitch Daniels said the announcement is evidence that Indiana is quickly becoming a global center for electric vehicle technology.
“Indiana has been leading the nation in attracting the re-investment of dollars back into America. With the first investments by Chinese firms, 2010 marks the dawn of the next chapter in that leadership.”
In January EnerDel announced that it has embarked upon a $237 million expansion project co-funded by the U.S. Department of Energy, to meet anticipated demand for its advanced battery systems. State officials said it’s part of an anticipated $600 million expansion project in the state of Indiana to yield capacity to produce approximately 120,000 electric vehicle battery packs per year.
• Maureen Hayden is statehouse bureau chief for CNHI’s Indiana newspapers. She can be reached at maureen.hayden@indianamediagroup.com.
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