Tech Companies Unite to Seek $1 Billion For U.S. Car Battery Research

Tech companies are banding together to help bring the battery industry success in the United States

Fourteen U.S. technology companies have banded together to create a group seeking more than $1 billion to help build a manufacturing plant able to make a new generation of batteries for electric cars.
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The National Alliance for Advanced Transportation Battery Cell Manufacture, or Alliance, wants to receive grants of $1 billion up to $2 billion over the next five years to help fund research. Despite an increase in popularity, the market for rechargeable lithium-ion batteries for cars is still too small to have one company take the initiative and build their own factory.

The companies also hope to bring the battery technology developed for use in Asian nations back to the United States, though understands they face an uphill battle. Joining 3M and Johnson Controls -- two established companies -- will be a mix of startups that are entirely focused on the development of new battery technology. The U.S. Department of Energy will offer the group input towards future research and product rollouts.

Other companies are expected to join the Alliance in the future, although it's unsure when the new companies will be unveiled. High cost and Asian dominance on the car battery market are two major problems that must be faced by U.S. manufacturers, as China and Japan have control of the technology at the moment.

The majority of batteries used by hybrid vehicles today are created by Asian companies, which is something else the Alliance hopes to tackle once it's better setup and organized. To do this, the construction of a large manufacturing facility must be built in the United States -- there are four dozen similar facilities under construction in China, though none are being built in the U.S.

Some analysts believe the technology side could become more important than oil, with Ford and General Motors expected to release plug-in electric cars within two years. Asian companies, including Panasonic Corp., have invested more time and money into car-batteries, and continue to reap the benefits.

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BY Michael Barkoviak
Source：DAILYTECH