EnerDel gets $4M federal R&D contract

Indianapolis-based battery developer EnerDel said today that it received a $4 million research and development contract from the U.S. Department of Defense.

EnerDel, a subsidiary of New York's Ener1 (Amex: HEV), said that under the new contract the company will work on creating lightweight, high-performance battery solutions for real-time tracking of military assets in harsh climates.

The defense project will also look at the creation of high-energy batteries to power miniature unmanned aerial vehicles, or UAVs.

"The potential demand for advanced battery technologies for both civilian and military applications today is tremendous," said Ulrik Grape, CEO of EnerDel, in a statement.

"We are collaborating with DoD to push the horizons of lithium-ion technology beyond automotive for highly specific defense needs. The market opportunities are very substantial."

EnerDel said the congressionally directed program contract will be funded by the Defense Logistics Agency and administered by the Crane Division of the Naval Surface Warfare Center in Crane, Ind.

Ener1 grabbed full ownership of EnerDel in a cash and stock deal last month (see Ener1 buys full ownership of EnerDel). Ener1 acquired the remaining 19.5 percent interest in EnerDel that it didn't already own from Troy, Mich.-based venture partner Delphi (OTC: DPHIQ), which has been in bankruptcy protection since 2005.

Ener1 paid $8 million in cash and 2.9 million shares of Ener1 restricted common stock for the EnerDel stake.