For a while now we've covered news of automakers driving ahead with plans for electric vehicles and lithium-ion battery makers jostling for position to profit from this initiative. The Wall Street Journal shone its own light on this race and highlighted the government's role.
The report said the Energy Department has been soliciting applications for $2.4 billion in funding aimed at
turning the U.S. into a battery-manufacturing powerhouse, and at the deadline last week, the department said it had received 165 applications. The Journal also quoted a figure from a 2008 Alliance Bernstein study that forecast the current $9 billion-a-year auto battery market, based on lead-acid batteries (where Johnson Controls Inc. [NYSE:JCI] is currently No. 1), could reach more than $150 billion by 2030.
So what's been going on so far? Here's a snapshot from our coverage in the sector:
- Daimler AG is buying a stake in Silicon Valley electric car maker Tesla Motors Inc.,
- Tesla is looking for a cut of DOE financing as well,
- Electric Motors Corp. (NASDAQ:EMCO) and Gulf Stream Coach will build electric pickup trucks in Indiana,
- General Electric Co. (NYSE:GE) is building a $100 million advanced storage battery manufacturing facility in Albany, N.Y.,
- GE also keeps pumping money into lithium-ion battery maker A123Systems Inc.,
- A123 is teaming with Chrysler LLC to supply li-ion battery packs for electric vehicles that will hit showrooms late next year and
- Johnson Controls' joint venture with Paris-based Saft SA said it will supply the complete battery system for Ford Motor Co.'s (NYSE:F) first series production plug-in hybrid electric vehicle.
Also, on Tuesday, Milton, Ga.-based Exide Technologies (NASDAQ:XIDE) asked its dealmaker to
look for new markets for renewable energy and lithium-ion battery applications.
In sector news outside the U.S., Volkswagen AG
said on Monday that it's looking at
partnership opportunities with Chinese automaker BYD Co. for producing hybrid and battery-powered vehicles. In March, Honda Motor Co. Ltd. (NYSE:HMC) said it would launch a lithium-ion battery joint venture with partner GS Yuasa Corp.
Factories for lithium-ion batteries will soon be
popping up around the U.S.
Michigan is one of a few states that stands to benefit from this. -
Baz HiralalAlso see:
Electric car battery makers jostle for position Will new DOE research agency ramp up under Chu?Is General Motors Corp. going bust, or green? Or both?A123Systems positions for electric car battle
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