Or not, we might add. As usual, the latest chapter in the Volt saga is both convoluted and taxpayer-funded. Automotive News [sub] reports that “A123Systems, the battery supplier for the upcoming Chevrolet Volt plug-in hybrid vehicle, will make lithium ion batteries for automotive use at a Michigan plant if it receives federal (136) loans, the supplier said today.” The plant would employ up to 14k, and supply batteries for 19 contracts including the Volt, Chrysler’s ENVI and Project Better Place. But this information is based on A123’s filings. There’s still no official confirmation from GM on the Volt contract, although Business Wire does quote GM’s Bob Lutz as saying “A123’s proposal to manufacture advanced battery cells and packs right here in the United States is a positive development for our industry and the nation.” The strangest part of the story is that the GM-Volt.com cheerleaders, usually privy to info straight from GM, were previously convinced that LG Chem/Compact Power had beat A123 to the contract. Back in October, GM-Volt’s Lyle Dennis seemed to confirm a Reuters report that LG/Compact had won. “As we have heard before in a subtle way from GM vice-chairman Bob Lutz,” wrote Dennis, “GM was only using one supplier’s packs in the mules. Concurrently, we had heard from Compact Power’s CEO that his batteries were being used in the mules. Sources have now confirmed this is the case and that the mules packs are performing flawlessly.” So really, who knows. GM may well be saving the announcement for the forthcoming Detroit Auto Show.
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If GM has any sense at all they’d be looking for at least two suppliers of battery packs for the Volt.
So having A123 and LG Chem/Compact Power as suppliers is nothing unusual. Why would GM want to make Volt production dependent on the ability of any one company to produce batteries?
Since Uncle Sam is GM’s new primary investor, attention has to be paid to issues like nation of origin. With the Bush administration, getting taxpayer money to buy stuff from Korea wouldn’t be a problem. Heck, that team was proud of a plan to buy Air Force re-fueling tanker jets from the Europeans. The new administration isn’t quite as likely to turn a blind eye to the question of where the money is going.
But so far, all of A123’s production happens at its “partner” China BAK Battery, Inc.: http://www.cnanalyst.com/cbak.html
Hence the push to get government funding to build an A123 production facility in the US.
Why mules? Why not burros? I’ve dealt with both and the burros seemed much more cooperative.
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Not for the first time, I look at a picture of a Chevy Volt battery pack and wonder, “Just how the hell are they going to replace one of those? It looks like the only way to get it into the car will be to build the car around it.”
I figure this is a real pertinent question, too, as I thought GM’s had a real a flair for picking troubled battery packs. To wit, the Cobasys battery for the weak hybrids – didn’t they all get recalled?
Don’t you mean 1.4k employees? i don’t think they will be employing people like a steel mill in the 1950’s…..
One reason why they chose Michigan for the A123 plant is that the state is making $335 million in tax credits available for battery production and development.
https://www.thetruthaboutcars.com/good-news-for-naias-good-news-for-detroit/
The 136 money’s already been allocated. If A123 uses it to help this country become an important producer of batteries, what’s the harm?
Let’s cut off our noses to spite our faces. If any US company gets any loans or gov’t contracts, let’s boycott them and make sure they fail.
“If GM has any sense at all they’d be looking for at least two suppliers of battery packs for the Volt.”
Not so sure about that. A123’s battery chemistry is different to the Compact Power’s chemistry, so in effect you’d have to debug two systems instead of one. The battery is the major risk in the program, so doubling the work on that seems unwise.
@ KixStart
Not for the first time, I look at a picture of a Chevy Volt battery pack and wonder, “Just how the hell are they going to replace one of those? It looks like the only way to get it into the car will be to build the car around it.”
Doesn’t it drop out from under the Volt with the phat/T bit at the rear wheels?
Maybe it’ll just drop out on the road while you’re driving if someone forgets to race-clip it.
I could not read the Auto News story since I don’t have a subscription. But if it implies that A123 won the Volt contract from GM, it’s probably wrong. All other news sources (including an A123 press release) say that A123’s plans to build a plant in Michigan have no direct connection to the Chevy Volt.
Wuffo2 wrote:
“If GM has any sense at all they’d be looking for at least two suppliers of battery packs for the Volt.”
Greg Locock responded:
“Not so sure about that. A123’s battery chemistry is different to the Compact Power’s chemistry, so in effect you’d have to debug two systems instead of one. The battery is the major risk in the program, so doubling the work on that seems unwise.”
No need for two separate systems. You just license the technology to each supplier. Have all parties sign a nondisclosure agreement and share the technology.
This is done all the time in the electronics, software, hardware, memory, CPU, chipset, aerospace, and defense industries. It’s also done in the car-building business where other companies make Chryslers or Chevvies.
Apple doesn’t have a semiconductor fab to make their systems. They used IBM for a time, then switched to Intel. Likewise, they aren’t screwing iPods and iPhones together in Cupertino; they pay to have that done.
PeteMoran: “Doesn’t it [the Volt battery] drop out from under the Volt with the phat/T bit at the rear wheels? Maybe it’ll just drop out on the road while you’re driving if someone forgets to race-clip it.”
Never mind forgetting to clip it… the lowest bidder supplies those clips.
More seriously, you may be right. But this means there’s an enormous T-shaped hole in the car. What does this do to the fundamental strength of the thing?
@ KixStart
the lowest bidder
“You’re thinking you’re sitting on top of the most complex machine ever built by man, with a million separate components, all supplied by the lowest bidder.” astronaut John Glenn when asked what was on his mind as he awaited lift-off.
(Not sure on your other questions – but I just love that quote).
“Remember all those classmates who got straight a’s in physics? Right now they’re hard at work designing the batteries for the new chevy volt”… crickets chirping…
I’m not thrilled with the recent round of government socialism, but I’d rather see money go to a company like A123 than spent by bankers. A123 will spend millions on things like R&D and manufacturing. Bankers will spend millions on the annual company retreat to Aspen.
A123’s (and companies like them) technology could also potentially (that’s the key word here) revolutionize not just cars but much of the energy grid. They’ve recently announced plans to install what basically amount to giant batteries on the electric grid to even out power distribution with power generation.
A123.. that name sounds made up.
Perhaps the fine folks at GM procurement were looking for battery makers in the Yellow pages and this was the first company listed (I keed I keed).
@ GeeDashOff
giant batteries on the electric grid to even out power distribution with power generation
Ew, that seems like a sure fire way to waste a bit more energy.
Local co-generation in cold climates (like they are successfully doing in the City of London -U K) and solar feed-in (like Germany) would be way cheaper.
Disclaimer: Our company has worked with Baxi.
I’m with tesaldeathwatcher; I don’t think this announcement by A123 necessarily means they have the Volt contract. Rumors to the opposite have been rampant. And A123 sees plenty of future business without the Volt contract.
Actually, if teh LG/Compact batteries performed flawlessly in the Volt mules, as claimed, I would expect them to use A123 as the sole supplier of batteries. This is GM afterall.
So what’s next? Dudes with Sawz-Alls cutting battery packs loose and stealing them out of dark parking lots?
Seriously I have recently read an article that claims we are faced a big shortage in key elements in the coming decades. Yeah I know – we’ve been short of one or another thing for my entire life so I do approach this with a bit of skepticism. However the articles insist that we will simply run out of certain elements.
Just use your favorite search engine to find:
“The US imports 90 per cent of its ‘rare earth’ metals from China”
“The Death of Gallium”