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Tag:

green batteries

Lithium Battery Supply Could Outpace Demand

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In advance of this fall’s launch of plug-in hybrid and electric vehicles, lithium ion battery manufacturers are breaking ground on manufacturing plants nearly every month.

Nearly $2 billion in stimulus funding has spurred the building of facilities in Michigan and Indiana that will start churning out battery packs by the end of the year, but the escalation in production has the potential to outstrip the demand for the batteries by as early as 2012.

As I said during yesterday’s interview on NPR’s “All Things Considered,” the battery companies have understandable but potentially misguided motivations to quickly ramp up production. For battery companies to receive the full amount of stimulus grants and loans, they must meet specified goals for production capacity.

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February 25, 2010 0 comment
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