Yulon and Koo Groups in Taiwan to Jointly Build EVs

Taipei, Oct. 12, 2009 (CENS)--The Yulon Group, the largest automaker in Taiwan, reportedly acquired some 20% in E-One Moli Energy Corp., a lithium-ion battery maker of the Koo Group, through its affiliate Sun Shine Investment Corp., according to local Chinese-language economic daily newspaper Economic Daily News (EDN).

EDN also reported that Taiwan Cement Corp. (a Koo company) chairman Leslie Koo and Yulon Group chairman Kenneth Yen have agreed to expand cooperation.

A senior manager at E-One Moli pointed out that Yulon has bought a stake in E-One, but refused to comment on possible partnerships.

K.R. Chen, president of Yulon, clarified that the two parties have only begun to examine possible cooperation without detailing nor signing a memorandum of understanding (MOU).

Industry insiders said that both Yen and Koo are very optimistic about the future of electric vehicles (EVs) and think the material supply for lithium-ion batteries would be strained. So they have agreed initially to form a joint venture to expand partnership and develop the huge market in China.

Yulon has announced to push its first own-brand battery electric vehicle (BEV) model, the LUXGEN EV+, to be demonstrated in Taipei from the second quarter of 2010, with the lithium manganese (Li-Mn) batteries to be supplied by E-One Moli.

Industry insiders said that batteries account for more than 30% of an EV's overall cost and the cruise range, core competitiveness of such product depend on the power storage devices, adding that very few companies have the full capability to mass produce the power cells for EVs, making E-One Moli the best partner for Yulon to build EVs.