Volvo Says Ener1 Financial Woes Will Not Affect EV Program

Volvo says financial troubles at battery supplier Ener1 will not derail its C30 electric-vehicle, currently in operation in test fleets in Europe.

“As recently as last week, Ener1 has committed to manufacture and deliver all requested battery packs for the C30 Electric program,” Volvo spokesman Geno Effler tells WardsAuto.

Ener1, parent company of battery maker EnerDel, was delisted by NASDAQ last month for not meeting financial reporting requirements; specifically, failing to file its Form 10-Q for the period ended June 30, 2011, on time.

The company received the notice prior to delisting, but says it will go forward with planned battery production.

“Ener1 continues to supply energy-storage systems for the Volvo C30 Electric and all of our transportation and grid energy-storage customers,” spokesman Brian Sinderson says, adding the company has restated its financials.

Ener1, a recipient of $55 million from the Obama Admin.’s economic stimulus package, also faces potential heat from the U.S. Department of Energy.

Several key Republicans have called on the agency to monitor all grant recipients after solar-panel maker Solyndra folded after receiving a $535 million government loan guarantee.

The C30 EV is powered by an electric motor with maximum power output of 82 kW (110 hp) and a 24-kWh battery pack. It has a range of about 93 miles (150 km).

Units are not available to the public and are being leased only to “corporate and institutional clients,” Effler says.

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Volvo sources batteries from supplier Ener1 for C30 EV.