It is interesting and surprising that an Asian company should come to the U.S. for batteries when most contracts are in the opposite direction.

Ener1, through its EnerDel subsidiary, will offer battery products for the automotive industry, but the announcement did not specify whether they would be for all electric vehicles or hybrids. ITOCHU, which saw its profits tank recently, could also provide a line of credit to Ener1 as part of the deal.

What could be an even bigger revenue generator for Ener1 is that ITOCHU, which has acquired several solar power companies, could also distribute the batteries as storage devices for solar energy. Solar storage, which allows power generated by day to be used at night or sold back to the grid during peak power demand, could be headed for substantial growth in Japan due to a government directive to expand solar power.

Asia has plenty of capable battery companies including Panasonic/Sanyo, Matsushita and South Korea's LG Chem, which will provide the batteries to the upcoming Chevy Volt, so this deal is a real coup for Ener1.

The company is also looking for help from the U.S. federal government, having recently solicited $480 million in DOE funds, while also being hopeful that the stimulus package taking shape in congress includes a generous helping for the battery industry.