A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

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Thread: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

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    A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America
    Edmunds

    September 13, 2010
    by Scott Dogget


    A123 Systems today announced the grand opening of the largest lithium-ion automotive battery production facility in North America.

    The new plant in Livonia, Michigan, is expected to expand A123's manufacturing capabilities by up to 600 megawatt hours per year when fully operational, contributing to the company's plan to expand global final cell assembly capacity to more than 760MW hours annually by the end of 2011.

    The opening of the Livonia factory comes just over one year after A123 was awarded a $249 million grant from the U.S. Department of Energy as part of the American Recovery and Reinvestment Act to help the company execute its strategy to ramp up U.S. manufacturing capabilities to meet increasing, market-driven demand.

    A123 will focus on manufacturing prismatic cells and systems at the new 291,000-square-foot Livonia facility. The factory is designed to enable the complete production process, including research and development, manufacturing of high-value components, cell fabrication, module fabrication and the final assembly of complete battery packs ready for vehicle integration.

    As part of its continuing U.S. manufacturing ramp up, A123 also plans to open a coating plant in Romulus, Michigan, expected to come on line during the first half of 2011. In addition to the DOE grant, the company received $125 million in state incentives from Michigan as part of its 21st Century Jobs Fund to help finance these manufacturing facilities.

    Continued at the link
    Last edited by Titanic; 09-13-2010 at 02:19 PM. Reason: Removed text to be only 75% of original

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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    i posted about this last week. EV BUSINESS BASED ON SUBSIDIES
    Lots about batteries in the news. A123 is officially opening its battery plant for electric cars in Michigan today. GM announces that it’s investing $3 million into a start-up company called Sakti3 that will make advanced EV batteries. But here’s my Autoline Insight. All around the world, countries and companies are building up an EV infrastructure that is based on massive government subsidies. Subsidies to build battery plants, subsidies to build EV plants, subsidies to install battery chargers and subsidies for consumers to buy electric cars. At some point these subsidies are going to run out. I give them maybe three years. And it’s hard to see how this vast EV infrastructure is going to survive when those subsidies dry up.
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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    Quote Originally Posted by motorman View Post
    i posted about this last week. EV BUSINESS BASED ON SUBSIDIES
    Lots about batteries in the news. A123 is officially opening its battery plant for electric cars in Michigan today. GM announces that it’s investing $3 million into a start-up company called Sakti3 that will make advanced EV batteries. But here’s my Autoline Insight. All around the world, countries and companies are building up an EV infrastructure that is based on massive government subsidies. Subsidies to build battery plants, subsidies to build EV plants, subsidies to install battery chargers and subsidies for consumers to buy electric cars. At some point these subsidies are going to run out. I give them maybe three years. And it’s hard to see how this vast EV infrastructure is going to survive when those subsidies dry up.
    The cost will come down. Then the subsidies will end.

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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    Quote Originally Posted by rsinsel View Post
    The cost will come down. Then the subsidies will end.
    the problem is overproduction because people are no going to rush out and buy EVs in great numbers.
    chevy owner since 1953,30 new chevys and 11 new corvettes since 1959 ,# 11 2008 corvette in the garage ,2004 impala,1988 2500 silverado,former NASCAR tech inspector,retired race engine builder. 2008 corvette sold waiting for the C-7. old 88 silverado gone and replaced with a new 2013 ext cab silverado.

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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    Quote Originally Posted by motorman View Post
    the problem is overproduction because people are no going to rush out and buy EVs in great numbers.
    However, vast oversupply will greatly reduce price, which will bring down the cost of the batteries (similar happened with computer chips) which will in turn bring down the cost of the cars which will in turn allow more people to buy. As a result economies of scale will be created. I'm sure some plants will go out of business, but once the scale is there then the cost is lowered.

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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    Quote Originally Posted by BlackGTP View Post
    However, vast oversupply will greatly reduce price, which will bring down the cost of the batteries (similar happened with computer chips) which will in turn bring down the cost of the cars which will in turn allow more people to buy. As a result economies of scale will be created. I'm sure some plants will go out of business, but once the scale is there then the cost is lowered.
    Well said. I can remember when only the quite well off could afford VCRs, then PCs, then digital cameras, etc. If I recall correctly the first ICE cars of the early 20th century could only be had by the wealthy, hence negative-minded naysayers with little vision insisted the car had no future.
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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    Quote Originally Posted by BlackGTP View Post
    However, vast oversupply will greatly reduce price, which will bring down the cost of the batteries (similar happened with computer chips) which will in turn bring down the cost of the cars which will in turn allow more people to buy. As a result economies of scale will be created. I'm sure some plants will go out of business, but once the scale is there then the cost is lowered.
    the govt subsidies are mine and your tax $$$ and that is a concern to me and it is not to you that this money will be wasted ??? if it is a viable industry private $$$ would be flying into it.the experts say that less the 2% of car production will be EVs
    chevy owner since 1953,30 new chevys and 11 new corvettes since 1959 ,# 11 2008 corvette in the garage ,2004 impala,1988 2500 silverado,former NASCAR tech inspector,retired race engine builder. 2008 corvette sold waiting for the C-7. old 88 silverado gone and replaced with a new 2013 ext cab silverado.

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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    Quote Originally Posted by motorman View Post
    the govt subsidies are mine and your tax $$$ and that is a concern to me and it is not to you that this money will be wasted ??? if it is a viable industry private $$$ would be flying into it.the experts say that less the 2% of car production will be EVs
    Not that I am a fan of subsidies, but by building business the tax base is increased. Long term federal, state and local governments will probably collect more in taxes than the subsidy (not definitely). Also if the plant is employing the unemployed that's more people off the welfare.....

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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    Quote Originally Posted by motorman View Post
    the govt subsidies are mine and your tax $$$ and that is a concern to me and it is not to you that this money will be wasted ??? if it is a viable industry private $$$ would be flying into it.the experts say that less the 2% of car production will be EVs
    In principle, I agree with you. I generally don't support the idea of the government spending my money to prop up specific businesses. If the business is viable, a good investment, then the market will support said business on it's own. And the government typically isn't very good at choosing who to support anyway.

    But all is not fair in the global economy. While other governments contribute tremendously to support their native industries, it is hard to sit back and watch the balance of trade fade away in key areas. And it is pretty hard to imagine battery technology not being a key area. So I can support at least some government assistance in that area.

    And even if EV production stays below 2% (which by the way is still a huge amount - and tremendously greater than current production) the large lithium batteries will also find homes in the less than full EVs known as hybrids, which already have sold in the millions. Plus, every car on the road carries a battery, weighing in at around 40 pounds. You improve that and you are gaining efficiency throughout the entire product range. In addition to the great array of other non-automotive uses for batteries which could certainly benefit from better battery tech.
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    Re: A123 Systems Opens Largest Lithium-Ion Automotive Battery Plant in N. America

    CaptianDan is right. In addition to that - the government is spending HUGE amounts of your money on wars in the Middle East. Wars that were, in one way or another, started because of oil and/or the profits certain factions make on selling oil to the West. Essentially, we are paying for both sides of the conflict. Keeping some of the $300 Billion dollars we ship abroad for oil in this country by paying the local electric company a fraction of that amount - is good for the economy directly and indirectly by reducing the chance that other countries will have excess funds to cause "problems".

    EV's, especially extended range EV's (because they eliminate range anxiety and are more likely to be accepted by the public) have the real potential to change the world we live in. Besides - in 5 - 10 years - the fastest cars on the road will be electric.....

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