Altair Nanotechnologies Inc. expects to invest several million dollars in expansion of its manufacturing facilities this year.
Executives of the Reno-based company said the size of the expansion depends in large measure on growth of its business selling batteries for electric vehicles.
Altair has a deal with Phoenix Motorcars of Ontario, Calif., to build batteries for an electric sport utility truck. The Reno company has delivered the first 11 battery packs ordered by Phoenix and has an order for $1.4 million worth to be delivered in February, March and April.
Speaking with securities analysts last week, Altair executives said they're not certain how fast the market might grow.
Phoenix needs to buy at least $16 million worth of batteries from Altair this year to keep Altair from shopping its technology to other vehicle builders. At the same time, however, the California utility PG&E reportedly is talking about buying 200 vehicles from Phoenix an order that might cause Altair to ramp up production quickly.
And Altair acknowledged that it's talked with Toyota about its batteries, although executives declined to provide any specifics.
Sales to Phoenix Motorcars have the potential to slow the rate at which Altair is burning through its cash, said Alan Gotcher, president and chief executive officer.
The company last year burned about $1.5 million a month. It posted a loss of $17.2 million on revenues of $4.32 million. That compares with a loss of $9.9 million on revenues of $2.8 million in 2005.
Gotcher said the company invested about $5 million in its battery business during 2006, an investment that it expects to pay off during 2007 and 2008.
He said, too, that Altair executives have undertaken a major effort to control costs in their battery business.
Altair executives said they're confident they can ramp up manufacturing quickly if the electric vehicle business gains traction.
