Who are your current customers and who will you be targeting in the future?
Our current customers include the Department of Energy, NASA, the U.S. Army, the U.S. Navy, and the U.S. Air Force and In-Q-Tel. The military was among our first customers before going public and will remain a priority. Moving forward, we expect to penetrate the rapidly expanding power tool market, electric scooter and electric bicycle markets, automotive, and utilities markets.
Who are your main competitors?
In truth, no one else in the world makes batteries with our multi-patented design. That said, the market is highly segmented. For instance, in the electric car market our main competitor is Panasonic. In power tools, it's Sanyo. And for our government contracts, it's SAFT.
How big is the battery market and what percentage are you targeting?
Electro Energy's Bi-Polar Nickel-Metal Hydride and Bi-Polar Lithium Ion technologies address the fastest growing segments of the worldwide rechargeable battery markets, which are growing at compound annual growth rates of 23.4% and 10.2% respectively, gradually replacing toxic battery chemistries such as cadmium and lead acid. Together, these markets are expected to grow from $3.5 billion in 2000 to $18.1 billion by 2010.
What makes your battery design different from traditional batteries?
EEI's revolutionary patented design is bipolar, opposed to the traditional monopolar (cylindrical or prismatic) battery design. Thin flat wafer cells are stacked atop one another, vastly improving current flow. This design minimizes space allocation and maximizes power, resulting in batteries with 50% higher power, 30% better volume, and a longer lifespan – all at 25% less expense.
From an investor's standpoint, what are the risks involved in placing any amount of capital into EEI?
Time. The technology is here. It's been rigorously tested by ourselves and our government customers. It's ready to be manufactured on a much larger scale than ever before. That leaves time. The only foreseeable risk is that we cannot manufacture these batteries as fast as we believe will be necessary to substantially dominate the markets we target.
What is EEI's corporate strategy?
Electro Energy Inc. is an engineering, technology and manufacturing organization, dedicated to meeting customer needs with advanced battery technologies and associated systems. By pursuing government-funded research and development and other specialty batteries, the Company has secured a competitive position for Bipolar Nickel-Metal Hydride batteries, Nickel-Cadmium Batteries and Lithium batteries in multiple markets, rather than depending on a single market. Electro Energy's long-term strategy is to provide battery products to global markets in excess of $500 million, through either direct manufacturing or licensing arrangements.
Does management have further acquisition plans?
Electro Energy acquired the power systems division of EaglePicher Technologies, LLC in Colorado Springs in October 2003. In April 2006, we acquired significant manufacturing assets designed to produce lithium-ion batteries and other equipment we will retrofit to produce nickel-metal hydride batteries and each in our patented bi-polar configuration. Additionally, we signed a 6 year lease to operate in 200,000 square feet of industrial space near Gainesville, Florida. We expect to continue to evaluating acquisitions that strategically fit in with our growth plans.
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