Sunday, May 09, 2010

Promising technology but can't manufacture in USA

What? An MIT professor invented an improved battery for use in plug-in hybrid cars. Very good. But the US doesn't have the capabilities required to set up manufacturing it. Very bad. He had to set up the initial plant in China to show that he could get it into production quickly enough. LA Times Yet-Ming Chiang relishes his 20-mile drive to work. His hybrid car gets more than 100 miles per gallon, recharges by plugging into a regular wall outlet and purrs so quietly that it's his favorite place for making important phone calls. But what makes Chiang's ordinary-looking beige Toyota Prius even more special is that it's powered by a breakthrough battery that he invented and is working to turn into the kind of high-tech, green, "Made in America" product that many see as the key to the nation's economic future. Safer and longer-lasting than conventional lithium-ion car batteries, the 52-year old MIT professor's invention packs 600 cells into a case the size of an airplane carry-on bag. His technology has transformed the batteries used in many cordless power tools. So why are Chiang and his company, A123 Systems, having trouble moving to full-scale commercial production and creating thousands of new American jobs with his better mousetrap? The answer is a story of the obstacles to a rebirth of U.S. manufacturing, and of the tantalizing possibilities if such a rebirth could be achieved. For Chiang's company has one foot in China and the other in the U.S., reflecting the forces that drive manufacturers overseas and the potential for a renaissance at home. The obstacles here are rooted in the sad history of manufacturing's decline in the United States: Despite the promise of Chiang's batteries, many on Wall Street and in Silicon Valley were incredulous when he and other leaders at A123 asked for capital to build factories in America — Asia, yes, but Michigan, why would you want to? Even more daunting, nearly all of the world's battery manufacturing industry is in Asia, where plants can be built faster and supplies and equipment are much easier to get than in the United States. These days, it's hard to find Americans who even know how to build a battery factory. That's why A123 had to give in and build its first plants in China, where the company could move into production quickly to show auto industry customers that it could deliver on future contracts.

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