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December 17, 2008 11:00 PM PST

U.S. companies team up to make electric car batteries

by Steven Musil

A consortium of 14 U.S. technology companies is seeking $1 billion in federal aid to build a factory to manufacture advanced electric car batteries, according to a report Wednesday night by The Wall Street Journal.

Aiming to catch up to Asian battery producers that already dominate the market, the National Alliance for Advanced Transportation Battery Cell Manufacture is described as the most ambitious effort to date to meet automakers' increasing demand for lithium-ion batteries. The report noted that U.S. automakers such as GM and Ford plan to roll out plug-in electric cars by 2010, but that the U.S. lacks sufficient facilities to produce the lithium-ion batteries those cars require.

Batteries are the most expensive component in plug-in electric vehicles, a market being pursued by a few U.S. companies. But battery makers and analysts say that U.S. manufacturers lack the financial means to meet the anticipated demand of electric cars.

Last week, former Intel CEO Andy Grove joined other Silicon Valley elites in advocating for an industry shift into energy technology. Grove told the Journal that he is urging Intel to invest in battery manufacturing as a way to diversify from its core chip business.

Grove said Intel's "strategic objective is tackling big problems and turning them into big businesses." He said Intel, with its cash resources, can invest in battery technology and manufacturing to bring down the cost of car batteries, which would drive adoption of plug-in electric cars.

Steven Musil is the night news editor at CNET News. Before joining CNET News in 2000, Steven spent 10 years at various Bay Area newspapers. E-mail Steven.
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by M C December 18, 2008 12:26 AM PST
Everyone wants aid now.

If the batteries will sell, you should have no problem getting private investment. If not, buy the batteries from Japan - hell, they were the ones who started making them while the US auto industry still thought everyone wanted Hummers.
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by pklein9 December 18, 2008 2:45 AM PST
Perhaps the US big 3 should be looking to produce hydraulic hybrids instead of copying Japan. The big 3 already have hydraulic tech, they've been making hydraulic transmissions for 50+ years.
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by willdryden December 18, 2008 9:09 AM PST
Hydraulic hybrids add complexity. They would love to make them, but they would never sell. It would cost too much to maintain as UPS will soon find out. They have just contracted for 50 of them to test. Serial electric hybrids decrease complexity and will cost less to maintain and that is why I am holding out for one.
by palsnaija December 18, 2008 5:43 AM PST
The Big 3 should come together and make something like Honda fcx-clarity
http://automobiles.honda.com/fcx-clarity/
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by pjhenry1216 December 18, 2008 6:24 AM PST
The FCX isn't going to be out for almost a decade. The Chevy Volt seems promising... assuming they can get it out in time. Unfortunately, the battery is what is keeping it somewhat on the expensive side. If the US can make them cheaper, it'd be easier for US automotive companies to get electric cars on the road. Unfortunately, the Big 3 did wait a few years too long for the shift, but they understand that now. If they can get the batteries they need (and if they can shake the union), they'd be more than able to compete with the foreign car companies with factories in the US.
by assman December 18, 2008 12:56 PM PST
I can get behind this. It's about time America makes an effort to be competitive again in technology. The past decade has been a disaster for the standing of the nation in the science fields, we should be supporting consortiums like this that want to advance our capabilities.
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by Xiaowei1 December 18, 2008 2:13 PM PST
Finally!
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by stanorlaski December 19, 2008 9:27 AM PST
I used to be in the battery business (different applications) and the reason we are not the premier manufacturers of lithium ion (as we are in lead-acid) is because of the environmental regulations. It is absurdly expensive to build and manage a plant of that type in the US.

As a country we either need to accept that we will never be competitive in "dirty" industries or change regulations.
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by chuck_whealton December 20, 2008 5:50 AM PST
I've got no problem seeing our tax dollars used as a LOAN, but only if they're going to produce them in the United States - since they are asking the US taxpayers for the dollars.

Intel is involved and they absolutely manufacture in the US, so that's a good start.

Charles Whealton
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by matthewbulat January 4, 2009 9:39 PM PST
Consider putting some real money into Ultra Capacitors. This could achieve quick charging, very high recharge cycles, more effective regenerative breaking (they can absorb power quickly) and most likely never need to be replaced. Eestor is working on ceramic Ultra Capacitors to run at 3500 Volts DC. The high voltage allows for more storage. The car range of these batteries would give an electric car the same sort of range as a petrol car. I have an article on electric cars at http://www.matthewb.id.au/index.php?view=article&catid=6:energy-efficiency&id=21:electric-car&option=com_content&Itemid=8
Regards
Matthew
http://www.matthewb.id.au/
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