Earth Equity News

Fighting to Make Batteries in USA. By Don Lee, LATimes, May 8, 2010. "Yet-Ming Chiang relishes his 20-mile drive to work. His hybrid car gets more than 100 miles per gallon, recharges by plugging into a regular wall outlet and purrs so quietly that it's his favorite place for making important phone calls. But what makes Chiang's ordinary-looking beige Toyota Prius even more special is that it's powered by a breakthrough battery that he invented and is working to turn into the kind of high-tech, green, 'Made in America' product that many see as the key to the nation's economic future. Safer and longer-lasting than conventional lithium-ion car batteries, the 52-year old MIT professor's invention packs 600 cells into a case the size of an airplane carry-on bag. His technology has transformed the batteries used in many cordless power tools." "So why are Chiang and his company, A123Systems, having trouble moving to full-scale commercial production and creating thousands of new American jobs with his better mousetrap? The answer is a story of the obstacles to a rebirth of U.S. manufacturing, and of the tantalizing possibilities if such a rebirth could be achieved. For Chiang's company has one foot in China and the other in the U.S., reflecting the forces that drive manufacturers overseas and the potential for a renaissance at home... Despite the obstacles, A123 and a few other advanced battery producers are building plants in Michigan and other states, thanks to massive government support that has offset Wall Street's skepticism and should help domestic producers narrow cost disadvantages with Asian rivals. A123 is getting $250 million in aid from the Obama administration's stimulus program as well as tax incentives from Michigan. Its first U.S. plant opens in June in an abandoned brick building near Detroit that once made VHS tapes for Disney."