Alex Zaharov-Reutt
Saturday, 20 December 2008 15:24
Opinion and Analysis
Page 2 of 3
”The Alliance seeks to develop one or more manufacturing and prototype development centers in the United States, which will be shared by Alliance members.
”Developing the capability to mass manufacture advanced battery cells is anticipated to require an investment of $1 to 2 billion over five years.
“Most of that investment is expected to come from the federal government, because lacking current orders for advanced transportation batteries, no U.S.-based battery companies can assume the risk of making such an investment.
“The Alliance will permit the most efficient use of available government support by having Alliance members share in the use of a large ultra-modern manufacturing facility rather than having to compete for smaller, less ambitious forms of government support.
"Ralph Brodd, a long time consultant to battery manufacturers said: A small, fragmented battery industry will not long survive in the face of determined Asian competition. Other countries are investing heavily in the manufacture of lithium ion cells. Those countries understand that whoever makes the batteries will one day make the cars."
“Lithium ion battery cell manufacture is heavily subsidized in many countries. The Alliance hopes to level the playing field.
“The Alliance seeks to replicate the success of Sematech, a government supported collaboration of U.S. semiconductor manufacturers formed in the 1980's to address the increasing migration of semiconductor manufacturing from the United States to Asia.
“Between 1988 and 1993, Sematech raised $990 million in government grants and private investment to help U.S. manufacturers recapture their lead in semiconductor technology.
“Semiconductors and battery cells are both strategic elements of their ultimate end products," says Sanford L. Kane, one of the founders and a former director of Sematech.
This fascinating news - and US annoyance at foreign advances in lithium ion technology, along with my follow-up thoughts continues
on page 3, please read on.
