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Analysts warn of dependence on foreign batteries

 
3 828 views Jun 22, 2008
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Analysts warn of dependence on foreign batteries

Analysts warn of dependence on foreign batteries

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As focus in the auto industry shifts from conventional petrol and diesel powered models to a new generation of hydrogen fuel-cell, all-electric and hybrid vehicles, demand for components to support the new technology is skyrocketing and those companies that have been in the business for years are now reaping the benefits. The sector with the brightest future is the battery industry, with demand for high-capacity lithium-ion batteries expected to grow the most.

Despite American research and engineering firms making significant advances in the field recently, Asian companies that have been building rechargeable batteries for the good part of the last two decades are expected to benefit the most. Most major carmakers are forming strategic alliances with Asian electronic companies as the race to develop low-cost volume electric vehicles continues.

We’ve seen Toyota join with Matsushita and Volkswagen team up with Sanyo, and many more similar alliances are expected to be revealed in the next couple of years. GM is one of the few companies to form a partnership with an American technology company, but according to the Detroit Free Press the batteries for its upcoming Chevrolet Volt plug-in hybrid (pictured) will be made in either South Korea or China.

Considering that batteries alone could cost up to $10,000 per car for vehicles like the Chevrolet Volt, there are fears that countries will simply be substituting their dependence on foreign oil with dependence on batteries as electric vehicles start to become mainstream. Analysts are already predicting battery sales approaching $10 billion annually worldwide by 2015.



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Comments (3)

  1. By hms90832 Posted: 6/22/2008 2:27pm PDT

    I know this has nothing to do with the topic above, but why isnt there anything about Scott Kalitta on here?? Hes involved in something involving cars.
     
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  2. By bambam Posted: 6/22/2008 2:50pm PDT

    hms90832, I too feel sory for him, but I think the news is too early for this webpage. Its not a news channel. As for Batteries, its different from oil(dah). its about the recharge capacity and where its comming from, its not like we are going to recharge our cars form china.
    Anyway the standards should be different between the locals and the internationals.
    The recycling of it should be cheaper locally and there are way to make the production of batteries cheaper too. its better to team up with your local partner or enemies here.
    you never know, it might as well be Ford & GM & Chrysler team up together for something special and this could also make it fair for the local industry. Choose wisely
     
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  3. By chris Posted: 6/23/2008 7:01am PDT

    bam, it's not about sourcing the energy.. ideally if you can get rid of the every day consumer use of petroleum, then industrial use could follow, meaning energy could come from anywhere.. but just like the polls show, most americans don't give a crap about how bad the war in iraq is now that gas prices are high and the economy is crap. people can deal with supporting other cultures with different views (I'm in no way saying that asia is anywhere near as the middle east), so long as they have jobs.

    the point here is, if we're going to reinvent the way we do something as vital as travel, then western nations should be pushing growth in those industries as hard as possible. It's like the push for small cars now. You're going to see GM and ford (and to a lesser extent, chrysler) putting a lot of weight behind small cars because that sector of the market is going to expand greatly and now is the time that you want to offer the best products in that market. that's where the future is. at least the near future. You take a look at the spy pictures for the interior of the next fiesta... that's interior design that you wouldn't have gotten on a lincoln 10 years ago. the next gen cobalt looks more appealing than the monte carlo from just 5 years ago.
     
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