NEC Refocuses Li-ion Battery Operations; Sells Canadian Operation

NEC Corp. <%=company%> is trying to strengthen its lithium-ion (Li-ion) rechargeable battery operations by shifting its focus to production and marketing of higher value-added prismatic batteries from its previous product mix of prismatic and cylindrical products. As a result of this strategic decision, NEC will sell NEC Moli Energy (Canada) Lt., the production center for its cylindrical battery operations, to E-One Energy Technology Corp. of Taiwan by the end of January 2000.

Moli was established in 1990 in a joint venture between NEC and Mitsui & Co. and Yuasa Corporation, to enter the battery market producing cylindrical Li-ion rechargeable batteries. In 1995 NEC, took a capital stake in Nippon Moli Energy Corporation, expanding the company's products to include prismatic Li-ion batteries. Three years later, NEC increased its stake in Nippon Moli Energy after which the company name was changed to NEC Moli Energy Corporation. Finally, in July 1999, the Canadian organization then became a 100% subsidiary of NEC.

NEC decided to divest Moli Energy (Canada) to E-One Energy to better focus its battery efforts. Sales of cylindrical batteries by NEC will therefore continue only until June 2000.

NEC will now solely focus on developing prismatic battery cells. By focusing more on this battery technology, the company hopes to gain a stronger position in the mobile phone and mobile terminal markets.

Edited by Robert Keenan