K2 Energy Solutions Joins with European Batteries to Construct Europe’s Most Advanced Rechargeable Battery Factory

Located in Varkaus, Finland, the New Facility will Help Manufacture Safe, Eco-Friendly Batteries for Europe’s Industrial, Energy and Transportation Needs

HENDERSON, Nev.--(BUSINESS WIRE)--K2 Energy Solutions (K2), a manufacturer of rechargeable battery systems for electric vehicles, mobility devices, power tools, electronics, and energy storage applications, has announced the construction of a highly advanced lithium-ion battery factory in Varkaus, Finland.

“In Europe, the use of fossil-based fuels is becoming increasingly difficult to sustain and has resulted in the need to find and develop alternative sources of energy”

The new 90,000 square-foot facility will be used to manufacture safe and eco-friendly high-capacity batteries for Europe’s advanced industrial, energy and transportation needs, and is being constructed in conjunction with K2’s European technology partner, European Batteries Oy (EB).

Utilizing the world’s most advanced lithium battery technology, K2 and EB are working in close collaboration to create the world’s most advanced rechargeable battery. Through this alliance, the companies intend to develop a safer, more efficient battery chemistry that is specifically designed to address Europe’s need for high-capacity rechargeable batteries.

“In Europe, the use of fossil-based fuels is becoming increasingly difficult to sustain and has resulted in the need to find and develop alternative sources of energy,” said Johnnie Stoker, CEO of K2 Energy Solutions. “With a facility in Varkaus, K2 and EB now have the ability and capacity to manufacture efficient and intelligent batteries that are safer, more efficient, more durable, lighter and more eco-friendly than traditional batteries.”

Officials from K2 and EB recently held a traditional cornerstone ceremony, which included several honorary guests including Finland’s Minister of Employment and Economy, Mauri Pekkarinen and three Members of Finland’s Parliament.

The $44 million facility is expected to be completed in Fall of this year, with full battery production beginning in early 2010.

ABOUT K2 ENERGY SOLUTIONS:

K2 Energy Solutions, Inc. was founded to commercialize and manufacture rechargeable battery systems for electric vehicles, mobility devices, power tools, electronics, and energy storage applications. The company’s battery systems are based on a lithium iron phosphate cathode material whose inherent safety and low cost makes them ideal for the large format systems required for energy storage and EV applications. K2 differentiates itself as a solutions provider for large format battery packs and systems, developing products based upon customer requirements and utilizing expertise in Lithium Iron Phosphate (LFP) battery chemistry.

K2 is a private corporation headquartered in Henderson, Nevada, with manufacturing capabilities in both Nevada and China. For more information, visit www.k2battery.com.

ABOUT EUROPEAN BATTERIES OY

European Batteries Oy is one of the first manufacturers of high-capacity batteries in the world. These batteries will be integrated with the intelligent battery management and controlling system developed and patented by Oy Finnish Electric Vehicle Technologies Ltd (FEVT). This provides the new opportunities for energy storage solutions in i.e. mobile industrial machines, vehicles and energy production.