Energy Conversion Devices (ECD Ovonics) (NASDAQ: ENER) announced today that its subsidiary, Ovonic Battery Company, has entered into a patent license agreement with G4 Synergetics.

G4 has been given a royalty-bearing, nonexclusive right to make, use and sell NiMH batteries based on Ovonic's proprietary technology for consumer applications.

G4 has also been given the option to expand its license to include the right to manufacture NiMH batteries for electric scooter and bicycle applications in China and to use and sell those batteries worldwide, ECD Ovonics said today.

"Not only does this new license reaffirm the strength of our intellectual property, but also confirms that NiMH battery manufacturers value access to advanced Ovonic materials and technology," said James R. Metzger, Interim President and Chief Operating Officer of ECD Ovonics.

ECD Ovonics' portfolio of alternative energy solutions includes solar electric power generation, NiMH batteries, and fuel cell, solid hydride storage and phase-change memory technologies.

Last week, the company announced downscaling to its battery and other divisions. See ECD Ovonics reorganizes with layoffs and closures. While its solar business is profitable, other divisions have not been.

Some have criticized the company for pursuing NiMH-based batteries in the face of increasing market demand for lithium ion technologies.