US battery makers seek billion-dollar boost

US battery makers seek billion-dollar boost San Francisco  - Is the US going to switch its dependence on foreign oil for a dependence on foreign battery makers? That's the question posed Thursday by a consortium of US firms who announced their intention to ask the incoming administration of president-elect Barack Obama for a billion-dollar boost.

The National Alliance for Advanced Transportation Battery Cell Manufacture plans to build a plant in the US to research and manufacture advanced lithium ion batteries for hybrid and electric cars that are currently made almost exclusively in Asia.

The companies include well known firms such as 3M, and advanced battery companies like EnerSys and Mobius Power. The plan is for the plant to make batteries for use by members of the consortium who would shape the batteries and use their own electronic systems to control their functions.

The alliance will be backed by the US Department of Energy's Argonne National Laboratory, a national research facility and leading developer of new battery technologies.

Alliance members said the move will jump-start a sector that lags behind Asian manufacturers whose products were built around technology developed by US companies. Several US start-ups have developed promising battery technology but outsource manufacturing to Asia.

Last week Hewlett Packard introduced a laptop battery made by Boston Power that charges twice as fast and lasts three times longer than standard laptop batteries.

"A small, fragmented battery industry will not long survive in the face of determined Asian competition," said Ralph Brodd, a consultant to the consortium. "Other countries are investing heavily in the manufacture of lithium ion cells. Those countries understand that whoever makes the batteries will one day make the cars." (dpa)

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