Tesla Energy Group, a newly formed division of Tesla Motors, recently signed an agreement to supply Think Global with lithium-ion battery packs for their line of “TH!NK city” electric cars. The supply agreement covers the development and delivery of battery packs starting in December 2007 and continuing through 2008. The supply agreement represents up to $43 million in revenues, of which approximately $3 million is expected to be realized in 2007 with the remainder in 2008.
Tesla Energy Group was formed in December of 2006 to develop and market custom designed battery packs for customers in a wide range of industries, utilizing Tesla’s patent pending technology for the development of high-power, high-capacity battery packs with superior performance and safety characteristics. Tesla Motors created Tesla Energy Group in response to demand from outside companies for advanced lithium-ion battery pack technology for automotive and other industrial use.
“The establishment of the Tesla Energy Group adds a significant new dimension to the business of Tesla Motors,” said Martin Eberhard, CEO of Tesla Motors. “Tesla Energy Group will provide additional sources of operating income for Tesla Motors while accelerating our competitive advantage in battery pack design and manufacturing. Both of these support our core business of developing and marketing extraordinary electric cars such as the Tesla Roadster.”
“Tesla Energy Group provides Think with an advanced battery pack design with impressive performance,” said Jan-Olaf Willums, CEO of Think.