Turning point :

Commencing business operations from consulting service on Li-ion Battery, we, ENAX, expanded our service areas to sales of Li-ion rechargeable battery production line and materials, manufacturing and sales of Battery-Pack, to sales of proprietary Li-ion battery. Striving to shift from a R&D contract type company to R&D and manufacturing type company, we have defined the last year as the beginning of second phase of ENAX establishment.  Since last year, we have expanding Yonezawa Laboratory to enhance our R&D activities as well as to establish the mass production systems.
In addition, big developments were made in China.  Anqiu factory has started its production of electrodes from this summer 2005, and at Tianjin, we are starting the assembly of Lithium Polymer battery by the autumn 2005.  These all developments show we have opened new phase of the company

Development and Challenges of Li-ion Industry：

Demands of Li-ion battery cells for both domestic and international markets have grown at a healthy pace and these trends are expected to continue for years.  In fact, the market scale in 2005 is estimated as over 400 billion yen.  This is said as the result that the application styles have shifted from combined use of primary batteries and rechargeable batteries to the applications using of Li-ion battery only.  However, issues, such as safety and high price, still need to be solved before the explosive growth on demands occurs.　　Although great challenges for the industry still exist, the demands for laminated sheet type batteries by Li-ion are very high (the average annual growth rate between 2003 and 2013 is over 10%).  This laminated type is, in fact, the ENAX’s leading product,  LSB*： (Laminated Sheet Battery that features are higher power density and higher energy density.  Small size to large size possible).
The increasing attentions to the application examples by the laminated type battery are such as an assist type bicycle and an E-bike.  The average annual growth rates for these applications were estimated as 33.8 % (2003〜2013).  In addition, HEV market receives attentions gradually.  The requirements by automotive companies are extremely tough on the specs and price, thus, the realisation of HEV itself may take longer.  Yet, the high oil price, the energy issues and the environmental issues do exist.  Besides the society is moving from “HEV= Ecology” to “HEV=Power”.  As a result, we believe the up growth of this particular market is the key for the growth of Li-ion battery industry itself.  Our LSB’s main features are higher power density and higher energy density which are the actually the main requirements for HEV use battery.  Hence, we are very confident to play the main part of this growing market.
While domestic and international Li-ion markets are expanding, ENAX has extended its business to China last year.  The procurement section was established.  Electrode manufacturing company in Anqiu, Sangton, and battery assembly company (as a joint venture) in Tianjin were also founded.  Both are planed to start operations within this year.

* Abbreviation of Laminated Sheet Battery. The main features are highest power density & highest energy density, and can be applied from small size to large size. LSB passes safety tests such as nail penetration test, external short circuit test, high temperature test, and so on. Application of this large scale battery is expected to include such as electric vehicles, submarines, fuel cell system.

Importance for continuous R&D activities：

Li-ion battery requires continuous R&D activities, and broad and cross-sectoral knowledge to establish the new technologies.  AND, I, myself, stand as an engineer at the leading edge of development with the strong pride of “the battery engineer” spirit.  We define this “battery engineer spirit” as “the never exhausting spirit of continuously keeping challenging to the limit and is seeking for ‘the best’ battery”.  This shared spirit with our young engineers since the establishment is the foundation of ENAX as the excellent engineers group.  As a result, we have been receiving high reputation even within the constantly advancing field of battery industry.  This spirit has led to the obtaining significant achievements, such as winning the prize of “Tokyo venture technological grand prize” in 2004 (the prize is for our LSB based car battery); succeeding the running test at high way by Pure Electric Vehicle which is the first in Japan; succeeding the running test of Light Rail Transit.  A battery is one of the fast-evolving industries.  Yet, we are confident that it is possible not only keeping our technical leadership within the industry but also possible to stay ahead of the competition.

Development in China; Anqiu and Tianjin :

China enjoys the significant economic development.  As a result, it has become very attractive place not only as a manufacturing base because of its vast extended land but also as a market itself because of its huge population.  Hence ENAX defines China as one of the important bases for global strategies, starting from Japan.  That is why we have started manufacturing and sales activities there where environmental and geographical advantages on the battery do exist. 

Anqiu Factory (May 2005)

Regarding the electrode manufacturing company at Anqiu which we established last year, we agreed to the joint management with Degussa, AG, (global material supplier, HQ in Germany) on 13 June 2005.  Incorporating the new type of ceramic membrane separator by Degussa, our LSB, (large volume battery) improves the performance and makes them safer.  Thus, we can expect expansion of market for not only electrodes manufactured at this company but also LSB themselves. 
  Another development in China is that we agreed to establish a Li-polymer battery assembly company for electric bicycle in March 2005.  Assembled batteries and/or modules which electrodes manufactured at ENAX Anqiu, and polymer electrolyte from Dai-Ichi Kogyo Seiyaku Co., Ltd., are used are sold to bicycle manufactures by Tianjin Yiqing Group (Holding Share) Co., Ltd. (Chinese trading company一軽集団) which hold sales channel as well as market cultivation capabilities in China.  Manufacturing activities will be starting by autumn 2005, and we expect that six-figure units sales will be actualised by 2007.

On the one hand, our original and unique technologies and R&D know-how, and the high spirit of seeking new technologies on the other are the two main driving forces to keep developing the highest power density and the highest energy density but safest world No. 1 Li-ion battery.  The battery by ENAX has characteristics of safe, high-power and possible to connect multi-cell.  By making full use of these characteristics, ENAX will shift our corporate style to be the R&D and manufacturing based company.  By doing so, we believe we can clearly carry out a service to the public which is the company mission.  Thankfully, our sophisticated technologies have been widely recognised not only within Japan but also Asia as well as USA and Europe.  In order to carry out our business and technical development further, we also would like to have your continued support and encouragement.