Ener1 to see the company’s headquarters in Manhattan will play a very simple, it is difficult to believe that one day he will become the industry giant. Last year in August, a former hedge fund manager Charles Haimer Garson has been named CEO of Ener1, its task is to consolidate the management of the company. His office is almost no furniture, a single framework, which has Indiana Republican Senator Richard Lugar visit the factory of the company is located in Indianapolis, where the photographs, another office is also an exhibition activities charitable, posters and a book size white metal fittings.
Ener1 is the future of their faith in this system, it is the lithium-ion battery model, Garson Haimer want to use to drive a variety of environmentally friendly vehicles. President Barack Obama has set a target that by 2012 the United States moving electric vehicles to reach 1 million. “If we want to achieve this goal,” said Garson Haimer, “it would take almost 400 billion dollars in domestic battery.” Most experts believe that lithium-ion batteries will become a mainstream technology, with hybrid vehicles currently in use compared to the lithium-ion batteries are lighter and more storage capacity. Ener1 businesses need to do is from the U.S. government to raise 480 million U.S. dollars of loans.
The current one big question is: When electric cars become a consumer product (which takes about 10 years), Ener1, or any other battery manufacturers in the United States can become significant competitors in this area ? In this area is already saturated. Other U.S. companies claim to develop the effective use of the model with at least Garson battery Haimer comparable products, they are separated from the Massachusetts Institute of Technology, A123Systems mixed companies as well as France and the United States-JohnsonControls Saft, it has managed with the Ford Motor Co., BMW and Mercedes – Benz has signed a contract. But U.S. companies face the challenge of Asia, these competitors have greater financial resources and more powerful lithium-ion-rich development experience.
Asian financial footing
Whoever is the winner, finally, there will be a number of lithium-ion batteries assembled in the United States. The key question is which companies will thus control the basic technology, which is installed in the battery pack inside the lithium-ion battery and the design of automotive power system.
Ener1 and A123, and other U.S. competitors have advanced technology of automotive batteries. The world’s largest manufacturer of conventional automotive lead-acid batteries and the motor industry to JohnsonControls have relevant experience, and with the French company Saft have established an alliance for the aerospace industry and supply industrial lithium batteries. Asian competitors is that they rely on the computer and electrical equipment lithium-monopoly and their integration with Toyota and Honda Motor Co. hybrid project relationship.
In addition, Asian companies are more able to pay for the construction of major facilities of high technology to manufacture hundreds of millions of dollars. U.S. investors willing to take risks for emerging companies to inject such a huge amount of money, especially when they are caught in an economic downturn, low-cost hybrid car oil also cast a shadow over the future. Share Price Company Ener1 took off last fall, but since December has fallen by half since mid-, and is currently about U.S. $ 4 per share.
That the U.S. government should provide a promising but not yet able to confirm that the outlook for the industry billions of dollars in loans and funds? Or if the government should wait until after the market taking shape to provide support for U.S. companies? This is one risk is that it may also be an important industry to repeat the memory chips, digital displays, the first solar panels and the first for a laptop and cell phone lithium-ion batteries in the past. In these areas, subject to funding from the federal government for all the greatest American scientists, but these industries and the consequent high-income manufacturing jobs are quickly installed in Asia. The U.S. labor costs and taxes have forced many companies to move abroad, but most business units abroad only because Asian governments, banks and companies more inclined to take risks than their American counterparts have invested heavily.
This time, the federal government in May to help. Last year in Washington under the heading “Advanced Technology Vehicles Manufacturing Program (AdvancedTechnologyVehicleManufacturingProgram) has canceled $ 25 billion U.S. funding to accelerate commercialization of environmentally friendly vehicles and battery manufacturers are expected to attract a slice. Ener1 subsidiary EnerDel has applied for loans to build an annual production capacity at the plant to 60 million batteries. Watertown, Massachusetts-based A123 hoped rival Michigan, with 18 billion dollars to build a factory car batteries. U.S. manufacturer of lithium batteries from the recovery plan to provide two billion dollars in federal funds for research, development and production financing.
Lithium-ion rechargeable hybrid vehicles is considered a core technology. Hybrid cars and rechargeable most current hybrid cars is different from that of ordinary people can use free electricity, but also in the switch to gasoline engines even longer life mileage of its electricity. With the current hybrid cars use nickel-metal hydride battery from the battery capacity lithium-storage is that it is three times more, while the release of its electricity is twice as high. Entered 2011 Chevrolet Volt is the car uses the T-shaped lithium-ion battery that can accommodate 200 of these batteries. “They are not a separate part. And the car is everything,” Nissan Motor Co. joint venture with NEC to create an energy company to supply the vehicle (AutomotiveEnergySupply) MasahikoOtsuka President said that the objective of undertaking is for the new lithium-ion battery plant investment 275 million.
Can manage power grids
General Motors and Ford have agreed that if the United States and hopes to become the heavyweight field of environment friendly vehicles, and development of internal lithium-ion battery industry is essential, otherwise the fate of Detroit, will be held by Across the planet in the hands of suppliers. In addition, lithium-ion battery technology can also be used to help electric utilities more efficiently manage their power grids, the potential market size is much larger than the automotive market. “As a nation, we can count on the outside,” General Motors Corp. directorDannies Gray energy storage said, “but we will be left behind.” General Motors is turning to South Korea LGChem company, which provides the necessary Volt Automotive Lithium-ion battery, which the automaker said the U.S. companies did not experience sufficient production.
Another strong competitor is the Toyota Motor Corporation Asia Holdings Panasonic EV Energy Company (PanasonicEVEnergy). The current use of hybrid cars, batteries nickel metal hydride, 90% are supplied by Panasonic. Last year, Panasonic has agreed to acquire the world’s largest manufacturer of rechargeable batteries, Sanyo Electric (SanyoElectric).
China has a dozen manufacturers, the Chinese government has also announced that the lithium-ion is a strategic industry. Mainland battery giant BYD Automobile Company (Warren Buffett, the company owns 10%) Auto Show in Detroit with a small plug-in hybrids – F6DM attracted the attention of all. BYD said the car before switching to the gasoline engine, you can drive 60 miles using lithium batteries. BYD has already begun in the Chinese market to sell hybrid cars, which cost 2.2 million U.S. dollars. The Volt is expected to cost 4 million euros.
Analysts say that in the production of safe, reliable, affordable lithium-ion batteries, there is no American or Asian companies can solve all problems, such as the battery can meet the requirements of the car and so on . Which company has not launched a large-scale production, so those who do not practice the basis of rhetoric. The Tokyo-based analyst at JPMorgan Chase & Co YoshiharuIzumi that Panasonic is the strongest opponent, but “now assert that the final winner who will also be premature.”
Mass market concerns
The United States remains the possibility of success. U. S. Department of Energy Lithium Ion Research has invested nearly 600 million U.S. dollars. A123 has a General Electric, Qualcomm, and SequoiaCapital famous investors, it uses the Massachusetts Institute of Technology the development of nano-materials. A123 keeps the battery from its competitors, this equipment at voltages higher quality and lighter.
Ener1 during the last century and the mid-80s has begun production of telecommunications equipment. With the A123, as production EnerDel for assault utilities. However, since the credit crunch, now a major client – the Norwegian manufacturer Think electric car in a corner.
Currently, the largest U.S. companies on JohnsonControls. It is the French partner Saft has a manufacturing batteries, while Johnson and the world, renowned car manufacturers and design of the relationship between supplier relationship is an obvious advantage. But lithium-ion battery technology much better than the complexity of lead acid batteries. Power Solutions CEO Alex Naroj Smalley said, Johnson is more than their competitors to know how to design electronic devices for the automotive battery system. Johnson may also apply to federal loan. “We are actively developing plans to put into production in the United States, said Molina Noy.
Skeptics have suggested caution. California OregonHouse of TotalBatteryConsulting Menahem Anderman, president of the next 10 years, whether in the formation of mass-market electric vehicles skeptical. He noted that last year, when oil prices were $ 4 per gallon, in dollars, more than 3,000 U.S. dollars to spend to buy a Prius and other nickel-metal hydride batteries used in hybrid cars can be made profitable consumer base. However, if all the electronics are taken into account, the next generation of lithium batteries, ion batteries allow the cost of hybrid vehicles has increased by at least 8000 U.S. dollars. Anderman estimates, for those who want to save money Volt drivers, vehicles, annual production should reach 100 million units, and gasoline prices must be more than U.S. $ 5 per gallon. EnerDel, project manager Xiaoenhengde Ricks argued that manufacturers of electric vehicles are accelerating their plans. “The industry is taking shape,” he said.
Skeptics who also made the following question: Does the U.S. need to produce their lithium battery itself, rather than low-cost suppliers in Asia, where imports of lithium batteries? “If our goal is to reduce considerably the cost of technology for large-scale imports of fuel to give up, then I think you do not need to develop domestic manufacturing sector,” National Science Foundation (NationalScienceFoundation)William Hynes project manager said that the proposed U.S. technology companies to distribute small loans. And now, it is not guaranteed access to the taxpayer to help the future of American society will not be a largest Asian rivals annexation. Haimer Garson acknowledged, such a company Ener1 “will eventually be absorbed by another company and ongoing.” Automotive Li-ion battery is undoubtedly elements of exciting technology, but it can create the same sector exciting the United States things are suppose anyone.