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Stimulus Could Kickstart US Battery Industry

Al sends along a Technology Review piece that begins "Provisions in the Congressional stimulus bill could help jump-start a new, multibillion-dollar industry in the US for manufacturing advanced batteries for hybrids and electric vehicles and for storing energy from the electrical grid to enable the widespread use of renewable energy. The nearly $790 billion economic stimulus legislation contains tens of billions of dollars in loans, grants, and tax incentives for advanced battery research and manufacturing, as well as incentives for plug-in hybrids and improvements to the electrical grid, which could help create a market for these batteries. Significant advances in battery materials, including the development of new lithium-ion batteries, have been made in the US in the past few years; but advanced battery manufacturing is almost entirely overseas, particularly in Asia."

29 of 369 comments (clear)

  1. Environmental issues by phantomfive · · Score: 4, Interesting

    My understanding is that battery manufacturing pollutes the environment, and other countries have fewer environmental regulations, making it easier to do whatever you want. Realistically, think about it......do you want a battery manufacturer in your back yard? It may sound selfish, but I really don't. Maybe it would be ok, though.....

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    Qxe4
    1. Re:Environmental issues by h4rr4r · · Score: 5, Interesting

      I would want a nice clean one in my back yard. We should set tariffs on products that are not manufactured in a way that would be legal in the US. This would level the playing field.

    2. Re:Environmental issues by h4rr4r · · Score: 4, Informative

      Please stop making false claims that would have taken you 3 seconds to check.

      http://www.toxco.com/

      There you go they recycle. Besides if no one recycled them why would the recycling centers and such pay so much for old lithium batteries?

    3. Re:Environmental issues by Rei · · Score: 5, Interesting

      Where to start?

      1) We're talking about li-ion, not "lithium batteries". Lithium batteries are a completely different tech.

      2) There is no single type of battery known as "li-ion"; it's a family of different chemistries. Each one has their own different traits regarding recycleability.

      3) The single element that makes it hardest to recycle li-ions is the presence of a cobalt cathode, which makes the cells much more flammable and provides pretty much all of their (limited) toxicity. Most EV manufacturers are looking at li-ion variants that don't use them.

      4) Even in cells that use cobalt cathodes, such as Tesla's, they're perfectly recycleable.

      5) The main reason li-ions aren't generally recycled isn't due to some sort of impossibility of it; it's that the ingredients, especially in the newer variants, are dirt cheap. Cobalt is a relevant portion of the costs of traditional li-ions, but that's gone in the latest. What in a LiP cell is worth recycling? Lithium carbonate at $7 a kilogram? Graphite at even cheaper? Phosphorus and iron? The raw ingredients are pretty worthless. Which brings us to our next points.

      6) There is not a "limited" amount of lithium in the least. Lithium carbonate can be recovered from seawater in virtually limitless quantities at $22-$32 a kilogram with first generation technology. That's a couple percent of the total cost of the batteries. The reason people don't generally do that is because it can be gotten *even cheaper* from places like Bolivia, Chile, China, etc, for $7-8/kg (used to be $4-5/kg, but recent demand has outpaced scaleups of the mines). It's so cheap people can afford to use it for low-value uses like greases and glasses. In fact...

      7) At *current prices*, they have big competition right here in the US. These sorts of prices make the Kings Valley lithium deposits (Nevada) being developed by Western Lithium Corporation economical, for example. There's enough lithium in that one deposit, for example, to build hundreds of millions of electric vehicles.

      I could keep going, but I think I've made my point that you know nothing about what you're talking about.

      --
      You will be lose points for poor grammar.
    4. Re:Environmental issues by vux984 · · Score: 5, Informative

      But, would you like to pay $5 a AA battery? That's what the result would be. As much as we hate pollution and forced Chinese labor, we also hate high prices even more. Also, what would you do with Mexicans and Canadians smuggling batteries across the border. That's what will happen, like it or not.

      Exactly, I mean a factory that employs 50 people and makes millions of batteries per year would experience significant savings if they could pay Chinese wages.

      Wait a minute: Union wages x 50 employes / millions of units = very very small labor premium per unit. Turns out maybe battery manufacturing is probably dominated by the material costs, which aren't really any cheaper in China after all. All in all, it will probably add a few cents to the cost of "Made in USA" batteries.

      But I'm just /. spewing right? Anyone can pull numbers out of their ass!! If only there was some American AA battery factory out there so we could see the reality. Lucky us:

      "All Panasonic Alkaline batteries are made in the U.S.A. at our state-of-the-art manufacturing facility in Columbus, Georgia."

      Of course, those are "Panasonic Industrial Alkalines" those are gonna cost you a fortune:
      Panasonic Industrial AA Batteries 24/carton - $9.60
      Works out to $0.40 per battery. I think we'll cope.

      I accept your apology.

      Cites:

      Made in USA claim:
      http://www.panasonic.com/industrial/battery/oem/chem/alk/
      Panasonic Industrial AA's for sale:
      http://www.jirehsupplies.com/cgi-bin/commerce.cgi?preadd=action&key=PI-AA

  2. Check one for science by mc1138 · · Score: 4, Interesting

    It's really positive to see things like this coming out of the stimulus package. Yeah there's some serious question as to how well its going to do getting us out of this recession, but that being said, it does have some nice provisions in it for science related improvements, including a nice sized boost to NASA. Long term this is the sort of investment that will help keep our economy moving and on the forefront of innovation.

    1. Re:Check one for science by Anonymous Coward · · Score: 5, Insightful

      You feel good about an agenda being forced on you and paid for with your taxmoney? This has nothing to do with the economy. They are using the economy as an excuse to pay for things that are not necessary.

      drink the cool-aid sheeple.

    2. Re:Check one for science by PitaBred · · Score: 5, Insightful

      Bullshit. This is just more pork that's avoiding the issue. A "stimulus" would be punishing the people responsible for this mess, setting things up so that it can't happen again, and giving people faith in the system so that they aren't scared to spend their money knowing it will come back to them.

    3. Re:Check one for science by DerekLyons · · Score: 5, Interesting

      Right now, about the only entities that *can* borrow money effectively are governments -- in particular, the US government.

      The business my wife works for is stocking up for the summer, they just got a credit line for five million dollars - the same as they do every year.
       
       

      $800B sounds like a lot, but we'll be lucky if it even manages to stop the slide, let alone pull us back.

      Ah yes, taking money from one pocket (mine) and moving it someone else's pork barrel is a wonderful way to stop the slide. I suspect you've never heard of the Broken Window Fallacy.

    4. Re:Check one for science by bendodge · · Score: 4, Interesting

      I read an excellent book by James R. Cook called Full Faith and Credit: A Novel About Financial Collapse. It starts out with the US stock market over-leveraged, and then the stock market crashes, mortgages collapse, and massive inflation and interest rates occur as the government steps in and tries to help. The main character is a trader who buys gold and makes a vast fortune.

      As liquidity disappears, hedge and mutual funds and AAA companies fail and the dollar slides, Congress bails out banks and major funds to no avail. At the end a (laughable now) $100 billion stimulus is proposed (centering on infrastructure improvements), but the federal government teeters on default and starts having troubling paying bond interest. Unemployment benefit claims balloon, and in the face of imminent default and chaos, the president courageously proposes and passes a plan to cut the government down to actual income levels and shears off roughly half the government. There are various riots initially, but things finally settle down to a hard and thrifty recovery.

      At the end Cook includes a note saying that the collapse was compressed to 3 years for the sake of the story but that the real crash could take several more years. It's scary how realistic the entire things is, right down to terms like 'stimulus package' and 'bailout'. It's copyright 1999.

      --
      The government can't save you.
  3. Irony by Anonymous Coward · · Score: 5, Funny

    I find this ironic as I got laid off from a battery company. Too late for me I guess...

    1. Re:Irony by Locke2005 · · Score: 5, Funny

      Brought to you by: The Energizer Bunny! He keeps going, and going, and going... all the way to the unemployment line!

      --
      I've abandoned my search for truth; now I'm just looking for some useful delusions.
  4. Here we go again... by pieterh · · Score: 5, Insightful

    Every time I read "grant", "advanced research", and "tax incentive", I see "gift", "white elephant", and "sleaze".

    Yes, it's good to spend collective funds on roads, bridges, art, maybe even public fiber, insurance, and banking. But anything the market can do, it should. And I mean a free market, not that fake crony capitalism championed by Bush. In a free market, with proper authority to stop the powerful from escaping the rules, every company is free to compete without barriers. Every subsidy, cheap loan, and grant is a distortion of that market unless it goes to areas that cannot make a profit.

    1. Re:Here we go again... by pieterh · · Score: 4, Insightful

      Read my post again. A free market is not the Wild Wild West. Unions, labor laws, and environmental laws are about stopping the powerful from escaping the rules. In a free market, for example, an individual has the option to withdraw his/her labor. Big businesses try to remove this options. Unions put it back.

      At the same time, unions can work against a free market, when they get too powerful and themselves try to escape the rules (like competition).

    2. Re:Here we go again... by garett_spencley · · Score: 5, Insightful

      Milton Friedman argued that the legal framework is already in place to deal with companies polluting the environment. It all boils down to private property. Few people pollute their own land and few people care if someone pollutes his/her own land.

      Companies that pollute another person's property are already liable for damage caused to that property. The problem comes into play when dealing with public property and with the atmosphere. What we need is to extend private property laws to be inclusive of the atmosphere above that property. If someone pollutes the air on your property then you can sue him for the damages. There are already laws in place that touch on this to an extent. For example: here in Canada, if I run a business out of my home I can not allow any toxic gases to escape onto my neighbour's property. The only reason big industry isn't punished under these same laws is the practicality associated. We already have mass dumping into the atmosphere and for the government to say that it will enforce these pollution laws will have gross effects on the economy. There's really no other reason the government doesn't begin to more stringently enforce this principle.

      The way I see it, the public should start suing companies in class action suits for damages to public property, the same way they do for damages to private property.

  5. Why batteries by jhfry · · Score: 4, Insightful

    I don't want another battery, I want something completely new. I hope that the text of the bill doesn't actually use the words "battery" or even "electro-chemical".

    I would so much rather a ultra-capacitor or some similar storage device that could conceivably be free of rare metals, and have extremely fast charge times (were the current available)

    --
    Sometimes the best solution is to stop wasting time looking for an easy solution.
  6. most tech-y part of the stimulus? by wjh31 · · Score: 4, Interesting

    is this really the most important part of the stimulus in relation to tech, R+D, and similar things, how about a break down of all the ways it's going to affect anything that is 'stuff that matters' to nerds. I dont mean this as a troll, i would genuinely like to see a full list, new age batteries sound good, but cant be the only thing.

  7. Re:That kind of language doesn't say much by snspdaarf · · Score: 5, Informative

    Can someone tell us what the stimulus *will* actually do?

    It *will* increase the deficit.
    Other than that, the jury is still out.

    --
    Why, without your clothes, you're naked, Miss Dudley!
  8. Newsflash, paraphrased by Un+pobre+guey · · Score: 5, Funny

    Provisions in the Congressional stimulus bill could help jump-start a new, multibillion-dollar industry in the US for manufacturing advanced briberies for congressmen and senators and for siphoning off money from government pork to enable the widespread use of luxury homes and lifestyles by politicians. The nearly $790 billion economic stimulus legislation contains tens of billions of dollars in loans, grants, and tax incentives for advanced bribery research and manufacturing, as well as incentives for earmarks and kickbacks, which could help create a market for these briberies. Significant advances in bribery techniques, including the development of new fully off-shored briberies, have been made by corporate legal departments in the past few years. Advanced bribery manufacturing is primarily at the state and federal level, particularly in Washington D.C., but local governments are looking forward to far greater participation.

  9. Better Headlines by D+Ninja · · Score: 5, Funny

    - Stimulus Could Give Battery Industry A Jolt
    - Stimulus Gives Battery Industry a Jump Start
    - Stimulus Gives the Battery Industry A Gift That Keeps Going and Going and Going...
    - Battery Industry Charged Over Stimulus

  10. Re:You can't have it. by h4rr4r · · Score: 4, Insightful

    So other than racism do you have any comment you wanted to make?

    The reality is dumping in China or in California will impact everyone. Do you know where rivers end up going? We can and should set standards on environmental cleanliness. Then to ensure that our companies are not at a disadvantage all products imported to this nation must be produced in a way that meets those standards or its cost should be increased via tariffs to prevent abuse of the commons.

    The reality is dumping has a cost, but it is externalized. A tariff would merely internalize this cost.

  11. just keep the US auto industries hands off it by Locutus · · Score: 5, Interesting

    those companies once had millions to develop new battery tech and nothing came of it. Ovonics goes and invents the NiMH, partners with GM and sells a majority stake in the patent and then GM sells that to the oil industry who won't let anyone make large NiMH for electric vehicles. Leave the US auto industry out of this battery industry and maybe something will happen and it'll get a chance to be used in the next-gen autos.

    Remember, the EV1 got over 140 miles per charge on the NiMH batteries in the late 90s or very early 2001 period. GM is hardly getting 40 miles per charge of expensive lithium batteries today and nobody is using NiMH for mostly electric or all electric vehicles. It's not because the tech can't handle it. Ask any of the few Rav 4 EV owners out there.

    If the US auto industry is tied into this, I give it less than a 50% chance of working out to anything viable.

    LoB

    --
    "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
    1. Re:just keep the US auto industries hands off it by nxtw · · Score: 4, Interesting

      Remember, the EV1 got over 140 miles per charge on the NiMH batteries in the late 90s or very early 2001 period. GM is hardly getting 40 miles per charge of expensive lithium batteries today and nobody is using NiMH for mostly electric or all electric vehicles. It's not because the tech can't handle it. Ask any of the few Rav 4 EV owners out there.

      By volume, the Volt has 1/3 as much battery as the EV1 (even less by weight). (source)

      The EV1 was also designed to be as efficient as possible - it was a two-seater with the lowest drag coefficient of any production vehicle. I can't find any definitive sources, but it seems that the Volt is about 500 lbs heavier as well.

  12. too late. the lunatics already run the asylum. by Anonymous Coward · · Score: 4, Informative

    As an R&D type who has spent way too much time in the business world I can tell you that Obama, despite having thrown gargantuan amounts of money at this, is going to have a hard time making it stick.

    Western business has a sickness which one might call "middle man disease". For every $1 put into battery factories, 90c will go on financiers, accountants, marketers, "business development" and whatever else the middle men of today choose to call themselves.

    It is folklore that in certain parts of the world nothing gets done without bribing the right people. We have the same thing in the West except its a legalised, lobby-driven, slick form of bribing.

    For example in my native UK whenever the govt has some new "initiative" its remarkable how the same usual self-promoting suspects are quick to get around the trough. Despite inventing nothing (and contributing very little) this is where the vast majority if the funding gets creamed off. When the oxbridge/city/public school set have had their fill what little is left is passed on to their mates the next stratum down.

    And so on and so forth. On and on, down and down until the likes of you and me see a pitiful salary and a budget so tight nothing of value can be done and under terms and conditions so punishing (think: ownership of arising intellectual property) that nobody in their right mind would even think of getting out of bed to do it.

    Its a systemic sickness and Obama needs to get a clue real quick that between his lofty goals and the poeple doing the actual work lurk the layers upon layers of talentless parasites that got us here in the first place.

    It makes me mad that ANOTHER generation is lost to the same ivy-league/power/money/military-industrial complex.

  13. Re:That kind of language doesn't say much by Brandybuck · · Score: 4, Insightful

    There are only three ways to finance a deficit: taxes, debt, and inflation. Add this trillion dollars to Bush's trillion dollars, and the inescapable conclusion is that payment will be large, painful, and unlubed.

    --
    Don't blame me, I didn't vote for either of them!
  14. How is it racism? by tjstork · · Score: 5, Interesting

    To say that the asian countries should be kept out of the USA. To a nation, China, Japan, S Korea, all adopt mercantile trading policies - essentially hoarding dollars the same way 18th century Britain tried to load up on gold. At the same time, they protect their own economies from foreign imports both by encouraging a nationalistic culture that rejects foreigners and foreign things, and also through a use of tariffs. The fact of the matter is, you would be extremely hard pressed to make any reasonable argument that any asian country is interested genuinely in free trade. Go ahead, name me just one. Call me a racist all you want, but the same damn US Trade Office report on Japan's own unwillingness to buy stuff is that.

    Trade with asia is like a black guy trying to get a job in the old american south. No matter how he dressed, what degree he had, he was screwed because he was black. The same thing with trade with Asia. They can complain about this feature or that feature all they want to, and then perhaps even bribe some American media whores to defend their points, but the overall thrust is that no matter what the USA makes, or Europe for that matter, there will be no significant free trade between the West and Asia. It's just not going to happen.

    Free traders have been predicting a leveling of trade with asia now for 40 years, and I'm sick of waiting. Kick them the fuck out!

    --
    This is my sig.
    1. Re:How is it racism? by kestasjk · · Score: 4, Insightful

      How convenient, after years of economic prosperity on the back of trade with China (which both benefited from) now that there's a crisis they're against free trade and everyone should isolate themselves.

      Like it or not it was the greed of certain Americans that caused this crash, the reason it spread all across the world is because the whole world has been investing in the US sub-prime sector.

      Trying to deny that we live in a global economy, just as it goes into a crisis, is extremely irresponsible and we'd only end up hurting ourselves.

      Finally if you want to "Kick them the fuck out" try not buying their products.. Good luck, their products are what make the Western lifestyle affordable.

      --
      // MD_Update(&m,buf,j);
    2. Re:How is it racism? by tjstork · · Score: 4, Insightful

      How convenient, after years of economic prosperity on the back of trade with China (which both benefited from) now that there's a crisis they're against free trade and everyone should isolate themselves.

      China and the USA have a complicated relationship that goes through weird phases. By and large most Americans like Chinese people... Chinese food is great, the history and artwork are just amazing. There's always going to be an American soft spot for China because the two countries are opposites in some ways - China is very old, and America is very young.

      Like it or not it was the greed of certain Americans that caused this crash, the reason it spread all across the world is because the whole world has been investing in the US sub-prime sector

      Well, I'm not buying the sub-prime thing. The total value of all mortgages in the USA is only about 10 trillion dollars, and so I would think that if the subprime mess were the problem, that's only about two trillion worth, and the USA has already pumped that much money into the banking system to cover those losses, either via TARP, or via games played with the Federal Reserve.

      Finally if you want to "Kick them the fuck out" try not buying their products.. Good luck, their products are what make the Western lifestyle affordable.

      Um, the western lifestyle was more affordable before those products happened. It used to be, before free trade, that a single man could work 9-5 at a steel mill, support a stay at home, a bunch of kids, pay for medical expenses out of his pocket, own his house and have two new cars and a TV, and he could send his kids to college. When he retired, he got a company pension that lasted not only until he died, but until his wife died. Since the emergence of free trade, bit by bit, that standard of living has been eroded and that's what the Democrats are just screaming about while, foolishly, Republicans keep pushing the free trade button despite all the ruin that it caused. Yes, its good on paper, free trade is, but it just doesn't work.

      --
      This is my sig.
  15. Re:That kind of language doesn't say much by wytcld · · Score: 5, Insightful

    If you finance with debt, and spend the money borrowed on something that makes you markedly more productive, in the end it can be far cheaper than never going into debt at all. Let's say I'm selling firewood. If I borrow to buy a chain saw and a mechanized log splitter I'm going to be able to produce 20 times the firewood in the same amount of time, with the same amount of labor. That log splitter pays for itself in the first year. Smart debt is like that.

    The whole point of "capitalism" is capital - specifically borrowing it through various mechanisms so it can be employed to produce efficiencies that more-than-pay-it-back. A system without such mechanisms of debt isn't capitalist at all. Not all uses of debt work out; but when they do it's the very genius of the capitalist system.

    --
    "with their freedom lost all virtue lose" - Milton