The Homa Files

Excerpted from WSJ: “UAW, Bondholder Talks Slow GM’s Revamp”, Jan.Y 13, 2009

Michigan Gov. Granholm … is looking to offer big incentives to car-battery companies and other suppliers to that industry to locate in her state.

Ms. Granholm said that as much as $2 billion in aid to the battery industry could be included in a stimulus package from the Obama administration.

Batteries have been one of the biggest hurdles for U.S.-based electric and hybrid vehicle manufacturers. Lithium-ion car batteries are made in volume in Japan, Korea and China, and auto makers have been concerned that if battery supplies tighten, Asian car makers will dominate access to the technology.

Full article:
http://online.wsj.com/article/SB123178365916774153.html

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Ken’s Take: Batteries are the key (and most costly) component in hybrid electric cars.  Currently, virtually no car-power batteries are made in the US.  It’s strategically critical that they are.  Otherwise, we trade one foreign dependency for another.

Reminder: Virtually no lithium is mined in the US.  Most comes from South America: Argentina, Chile, and Bolivia.

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This entry was posted on January 13, 2009 at 6:57 am and is filed under Autos - Travel, Environment - Green. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.