Last month the DOE released its 2008 Annual Progress Report for the Energy Storage Research and Development Vehicle Technologies Program. This report is a frank and relatively upbeat assessment of the current status of Li-ion battery research and development that also provides a stark wake-up call for investors in energy storage stocks.
The reality check has been done and the DOE’s verdict is clear: Lithium-ion batteries are not ready for prime time.
And like all the Billions thrown into fleeting bad vehicle ideas we have just put $2 billion in loans to manufacture these batteries....
In its description of ongoing research efforts to develop high-power batteries for HEVs, the DOE said: “High-power energy storage devices are among the critical technologies essential for the development and commercialization of HEVs. This effort is focused on overcoming the technical barriers associated with commercialization of high-power batteries, namely:
Cost, Performance, Abuse Tolerance, Life.... ouch.
I’m a simple-minded creature and I believe that little things like costs and benefits matter, particularly in the midst of the worst recession since the 1930s. When the Annual Progress Report from the DOE group responsible for supporting Li-ion battery research and guiding national policy concludes that:
- Li-ion batteries will not be a cost-effective solution for HEVs unless and until somebody finds a way to slash manufacturing costs by 50%; and
- Li-ion batteries will not be a cost-effective solution for PHEVs unless and until somebody finds a way to slash manufacturing costs by 67% to 80%;"
America’s energy problems are too urgent to overlook and its economy is too stressed to invest billions in technologies that may never become cost effective. Our only rational choice is to go to work today with the tools we have and be ready to embrace newer and better tools when they prove to be cost effective.
"Post correction" While it sounds as if I am 'poo, pooing' Li-ion batteries... I would much rather see 40 billion of my tax dollars 'invested' in this area than 'burned by G.M. and other automakers'. The DOE and I have 'optimistic hope' in a viable future with Li-ion batteries, I am not sure we would say the same for G.M.
Only 'investing' in America will bring back America.
