Shaky battery manufacturer claims a breakthrough

DETROIT - during a visit by President Obama Gelobt a centerpiece of his Administration should be used assist with the production of sophisticated electrical batteries in the United States A123 systems for $2 billion in government subsidies.

Instead, the company, which has the lithium-ion batteries for electric cars, along with the rest of which the nascent industry stumbled and now threatens more ammunition to critics of the President heavy spending on new energy technologies to.

A123 had to workers at the new factory in Livonia, Michigan, partially recall a grant of 249 million, after get the battery for a new electric vehicle ground to a halt, and one expensive action financed with the promise needed cut. Completion of the factory has been delayed. The company is running short of cash and warned that if it raises more money from private investors, it is not in a position to remain in business could.

Still so much how is A123 representing technology risks of the Government programme battery also it promises. On Tuesday, a new battery technology, which the company claims is a breakthrough in the industry reveals A123 systems.

The advance is a new chemistry, providing a simpler, lighter, long-life battery, that is not necessary, could allow a system to cool or heat it used you.

The success or failure of the new technology can determine the fate of the A123. It renders promote also an early ruling about Mr. Obama of broader push to electric cars and build a domestic industry to develop and manufacture advanced batteries to run it.

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The president's prediction of a million electric cars on the road by 2015 seems to be given unattainable, the tepid demand, the first models on the market. So far in this year a total combined sales of the Chevrolet Volt plug-in hybrid and electric cars Nissan leaf less than 10,000 vehicles. Slow sales which have become the already an election issue, and the failure of the Solyndra solar panel company has also intense criticism of the Government clean energy subsidies drawn.

In response to the Solyndra bankruptcy cost the taxpayer around half a billion US-dollars, the Department of energy has tightened controls on technology loan, in connection with electric cars and other fuel-saving. In the case of Fisker Automotive, get the faulty A123 Batteries, the Government of its lending froze when the company missed production schedules.

Executives of A123, based in Waltham, Massachusetts, say that the company has received, a slower start than expected as the market for electric cars could grow. The company recorded a loss of $125 million in the first quarter of this year as sales fell 40 percent over the previous year.

"It is softer than what we and everyone else expected," said David Vieau, Chief Executive of A123.

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Still remain the big automakers has so far committed electric vehicles, and g.m A123 provides contract batteries for the Chevrolet spark, a fully electric mini car available next year.

Recently, the Government, for its part, A123 admitted an additional two years meet production targets Michigan built and earn the full $ 249 million is the financial aid that is disbursed in tranches. So far, only about half of the money to the company was given.

In addition to the factory grant A123 Department of energy received money about $ 14 million for research and development.

The Government may have funded the company, since "these guys have some new chemistry, some new ideas, rather than the ability to market the product", said Professor Prashant N. Kumta, a materials science expert at the University of Pittsburgh, started on lithium-ion batteries in the 1990s years.

He said that A123 has been "a bit disappointing" because it had been not much product on the market.

The Energy Department said it would comment on the viability of individual companies.

But a spokeswoman, Jen Stutsman, said: "the market for electrified vehicles is expected to 2017 tripled - there are new types of hybrid and electric vehicles and racing car manufacturer in every part of the world to introduce."

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"The investment will help today to ensure that the jobs that support this fast growing industry here are created in the United States," she said.

Proponents of the energy programs say, it is unrealistic to expect, every Government supported company immediately thrive.

"We are ready, some of the risks for the new energy economy, to accept should be even if not, some these startups" said representative Diana DeGette Colorado, the ranking Democrat on the House energy and Commerce Subcommittee, the Solyndra investigated.

But Mitt Romney, who has attacked suspected Republican nominee for President and former Governor of Massachusetts, subsidies for energy companies as a waste of tax dollars. "If Mitt Romney is President, Government stops interfering in the market," said a spokesperson for Romney, Andrea Saul on the campaign website.

A prime example is A123 systems as one can promising venture in the harsh realities which bog automotive marketplace. Founded in 2001, the company first and foremost has manufactured focuses specifically engine spark, a minicar of General on the lithium-ion battery packs for cars like the Fisker karma and a forthcoming full electric version of Chevrolet.

But the company stumbled upon, as it might be defective batteries planned for use in the vehicle Fisker had to remember. And with the future market for electric cars in question, A123 may not survive solely on batteries for these models.

Instead A123 hopes now that the new technology which is there Tuesday, called EXT Nano phosphates revelation it helps open up new markets. The company says that eliminates the new electrolyte chemistry for heating and cooling in extreme temperatures. That would avoid the addition of expensive and heavy temperature management devices and extended battery life.

The technology could be used to produce batteries for telecommunications equipment, military vehicles, and hybrid gas electric cars, using start stop engine systems. It could provide even batteries that could be used to replace the millions of traditional lead acid batteries in cars on the road at the time.

"It's a hedge against the market for electric vehicles," said Mr. Vieau.

The company hopes that the promise of new technology helps investors, a $50 million convertible bonds offering of the company back to convince.

A battery expert said that the new technology could have immediate impact on the luxury car market extended service life.

"The car companies can advertise that this lithium-ion battery to last the lifetime of the vehicle, without replacement comes," said Ahmad A. Pesaran, engineer at the Government of the national renewable energy laboratory in Golden, Colorado

Potential customers from the automotive industry can samples testing, 2013 is to start this year with production in the first half.

This story, "Wackeligen battery maker claims a breakthrough" times originally appeared in the New York.

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