This contract marks Arotech’s entry into the field of hybrid electric vehicles. Through the end of September 2012, more than 5.2 million hybrid electric vehicles have been sold worldwide.

Arotech has substantial know-how in large format battery technology, having in the past, under its Electric Fuel name, successfully developed zinc air batteries that powered electric vehicles more than 250 kilometers in a single discharge.

This is our second notable contract for large format lithium ion, and represents a strategic step to balance our significant and growing business in the military power sources market. Having learned important lessons from our previous foray into the electric vehicle market, we are determined to minimize risk by only undertaking profitable projects. We believe that between grid storage and electric vehicles there is significant promise for large format lithium ion. With our extensive know-how in lithium batteries and their power management, this is the ideal time for us to enter this emerging market.

—Arotech Chairman and CEO Robert S. Ehrlich

Arotech develops and produces high power zinc-air batteries and is believed to be the sole supplier of this technology to the US military. In addition, Arotech develops high-end primary and secondary batteries and associated chargers and has long experience in working with government agencies, the military and large corporations.

The Battery and Power Systems Division consists of Electric Fuel Battery Corporation and Epsilor-Electric Fuel Ltd.