Ener1 sells $55m of senior notes

Ener1, a manufacturer of lithium-ion batteries for plug-in hybrid vehicles, has announced that it has agreed to sell $55m (£36m) of senior unsecured notes, together with shares of common stock and warrants, to certain investment funds, led by funds managed by Goldman Sachs Asset Management.

The company also announced the sale of $10m in senior convertible notes to strategic partner Itochu, a Japanese general trading company.

The sale of the senior notes is subject to customary closing conditions and is expected to be completed on or before 8 September 2010.

Ener1 will use these funds, along with its grant from the United States Department of Energy under the American Recovery and Reinvestment Act, for general operating expenditures and to help pursue its intended manufacturing plans to install 260MW, or capacity for 11,000 electric vehicle battery packs, at its three Indianapolis, Indiana, facilities.