Summary:
Summary: th For the November 7 issue of NAATBatt’s Advanced Battery Weekly, we highlight recent sector activities. The NAATBatt, U.S. and Asia Indices were up 2.2% w/w, 3.8% w/w and 3.6% w/w, respectively. The Russell 2000 and S&P 500 Indices increased 4.7% w/w and 2.9% w/w, respectively. Executive Director James Greenberger writes that, notwithstanding the politicization of cleantech, the Republican victory in the midterm elections should have little effect on the business of electricity storage or on investments in advanced battery technology. Read “Advanced Batteries and the Midterm Elections” in the Executive Director's Notes section of the newsletter below. New Member: SAFT Batteries has joined NAATBatt as its newest Gold level member. Saft has long been the world’s leading designer, developer and manufacturer of advanced technology batteries for industry. Its multi-technology battery systems meet the needs of a wide variety of customers worldwide, including nickel-based and primary lithium batteries in industrial infrastructure, transportation, civil and military electronics and lithium-ion solutions in energy storage, telecoms, marine, vehicles, space and defense. Saft continues to develop new generations of batteries for new applications, helping customers develop innovative products and services. For more information about SAFT, go to: www.saftbatteries.com. Key Highlights: Polypore and Panasonic have signed a letter of intent to work together in the development of coated and uncoated Celgard brand separators to meet Panasonic's requirements for their next generation cylindrical battery cell production. Successful completion of this development effort is likely to lead to a long-term supply agreement. Southern California Edison (SCE) announced the selected suppliers and projects for 261 megawatts (MW) of energy storage resources for grid-connected energy storage. There are currently 112 operational energy storage projects in California, according the U.S. Department of Energy’s Global Energy Storage Database. Maxwell Technologies has been awarded a cost-shared technology development contract by the United States Advanced Battery Consortium (USABC) to develop a hybrid ultracapacitor/lithium-ion (li-ion) battery for stop-start idle-elimination microhybrid autos. The company will provide 51% of the program funding. Toyota Motor will be testing electric vehicle (EV) charging infrastructure in Aichi Prefecture from November 1 until March 15, 2015. The tests will involve 147 standard chargers and will target commercial, tourist, accommodation, cultural and social service facilities. EaglePicher Technologies has been awarded funding under the Defense Production Act Title III Program (DPA Title III) for Phase II of the Lithium-Ion Battery for Military Applications (LIMA) project. During Phase I, companies were required to demonstrate electrochemical cell technology capable of exceeding 250 watt-hours per kilogram at an elevated discharge rate. The company was selected as the sole contractor for Phase II of the LIMA program. UQM Technologies has signed a long-term supply agreement to provide electric power systems for industrial and commercial applications to a pioneering energy management company. An initial purchase order for 35 units has been received. © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 Dubai's Roads and Transport Authority (RTA) is teaming up with Dubai Electricity and Water Authority (DEWA) for an electric bus (ebus) trial. The ebuses will be able to cover up to 200 kilometers (km) (or 124 miles) at a speed of 100 km per hour (or 62 miles per-hour) and can be recharged for 30 minutes to reach 80% battery capacity. GrapheneNanoChem (Malasyia-based) announced a product development agreement with Sync R&D for grapheme-enhanced li-ion batteries for use in ebuses. As part of the ‘Electric Bus 1 Malaysia’ program, GrapheneNano Chem and Sync R&D will jointly develop a battery prototype for an electric shuttle bus. Car Charging Group announced it has executed an agreement with the City of Plano, Texas for the operation and maintenance of 19 Blink charging stations across 7 locations. The Blink locations include Russell Creek Park, Maribelle Davis Library, Carpenter Park Recreation Center and Oak Point Recreation Center. Quantum Fuel Systems announced it has entered into an agreement with Fisker Automotive and Technologies Group (Fisker Auto Group) pursuant to which the company will license its plug-in hybrid control software to Fisker Auto Group. The software license provided to Fisker Auto Group will support Fisker Auto Group's re-launch of the Karma vehicle and could be expanded to include the planned Atlantic line vehicle. A Few More Details: Polypore and Panasonic have signed a letter of intent to work together in the development of coated and uncoated Celgard(R) brand separators to meet Panasonic's requirements for their next generation cylindrical battery cell production. Successful completion of this development effort is likely to lead to a long-term supply agreement. Source: Polypore International SCE announced the selected suppliers and projects for 261 MW of energy storage resources for gridconnected energy storage. Pending approval by the California Public Utilities Commission, the companies named to provide storage systems and the amounts are: • NRG Energy 0.5 MW • Ice Energy Holdings, Inc. 25.6 MW • Advanced Microgrid Solutions 50.0 MW • Stem 85.0 MW • AES Energy Storage 100.0 MW There are currently 112 operational energy storage projects in California, according the U.S. Department of Energy’s Global Energy Storage Database. Source: CESA Maxwell Technologies has been awarded a $2.68 million cost-shared technology development contract by the USABC to develop a hybrid ultracapacitor/li-ion battery for stop-start idle-elimination microhybrid autos. The company will provide 51% of the program funding and is tasked with demonstrating the technological and economic feasibility of a 12-volt hybrid energy storage system consisting of li-ion batteries and its ultracapacitors that can meet USABC performance specifications. The USABC is a subsidiary of the United States Council for Automotive Research LLC (USCAR), the collaborative automotive technology organization for Chrysler Group LLC, Ford Motor Company and General Motors. © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 Source: Maxwell Technologies Toyota Motor will be testing EV charging infrastructure in Aichi Prefecture from November 1 until March 15, 2015. The tests will involve 147 standard chargers and will be conducted jointly with four municipalities (Kariya City, Toyota City, Toyohashi City, and Nagakute City) and two companies (Toyota Industries and UNY), all of which are located in Aichi Prefecture. The aim will be to ascertain the optimal number and location of charging stations and their ease of use. In addition to targeting commercial, tourist, and accommodation facilities as in past tests, this year’s tests will also involve cultural and social service facilities (including some in hilly and mountainous areas). Source: Toyota Motor EaglePicher Technologies announced it has been awarded $22 million in funding under the DPA Title III Program for Phase II of the LIMA project. During Phase I, competitors were required to demonstrate electrochemical cell technology capable of exceeding 250 watt-hours per kilogram at an elevated discharge rate. EaglePicher was selected as the sole contractor for Phase II of the LIMA program. That phase of the program provides cost-shared financial assistance to establish a production facility supporting the manufacture of raw materials, cells, and batteries utilizing this newly-developed, highenergy density formulation. Source: EaglePicher Technologies UQM Technologies has signed a long-term supply agreement to provide electric power systems for industrial and commercial applications to a pioneering energy management company. The company’s ® PowerPhase electric motors and controllers will be incorporated with this partner’s proprietary technology to create solutions for its customer base. An initial purchase order for 35 units has been received. Pilot shipments are expected to begin in early 2015, followed by another purchase order for 500 units once certification is complete and follow-on customer orders are received. These production units are expected to start shipping in late calendar year 2015. Source: UQM Technologies Dubai's RTA is teaming up with DEWA for an ebus trial. The ebuses will be able to cover up to 200 km (or 124 miles) at a speed of 100 km per hour (or 62 miles per-hour) and can be recharged for 30 minutes to reach 80% battery capacity. The RTA will assess the environmental benefits by measuring the rate of reduced carbon emissions and also measure other variables such as battery life and maintenance costs. Source: Arabian Supply Chain GrapheneNanoChem (Malasyia-based) announced a product development agreement with Sync R&D for grapheme-enhanced lithium ion (li-ion) batteries for use in ebuses. As part of the ‘Electric Bus 1 Malaysia’ program, GrapheneNano Chem and Sync R&D will jointly develop a li-ion battery prototype for an electric shuttle bus. The first prototype battery is expected to be completed in 2016. A graphemeenhanced anode could provide 10x more power storage and also reduce charge time. Under the Malaysian Economic Transformation Program, the Government has announced a target of having 2,000 ebuses and 100,000 electric cars on the road by 2020. Source: Electronics Weekly Car Charging Group announced it has executed an agreement with the City of Plano, Texas for the operation and maintenance of 19 Blink charging stations across 7 locations. The Blink locations include Russell Creek Park, Maribelle Davis Library, Carpenter Park Recreation Center, and Oak Point Recreation Center. The Blink Level II EV chargers are able to recharge electric cars, and accept payment with the Blink InCard or major credit card via the Blink mobile application, Blink Network website or Blink customer support center. Source: Car Charging Group Quantum Fuel Systems announced it has entered into an agreement with Fisker Automotive and © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 Technologies Group (Fisker Auto Group) pursuant to which the company will license its plug-in hybrid control software to Fisker Auto Group. The software license provided to Fisker Auto Group will support Fisker Auto Group's re-launch of the Karma vehicle and could be expanded to include the planned Atlantic line vehicle. Quantum will receive an initial payment of $2.0 million (to support the Karma) on or before November 27, 2014, and a second payment of $2.0 million (to support the Atlantic) on or before October 27, 2015. The agreement also gives Fisker Auto Group the option to acquire joint-ownership of the hybrid control software for the Karma, Atlantic and future platforms for additional consideration on or before October 27, 2016. Source: QuantumFuel Systems © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 Exhibit 1: Indices Performance (From January 3, 2012) (Indexed to 100) 200 Tesl? a Motors at 864 150 1/17/2012 1/31/2012 2/14/2012 2/28/2012 3/13/2012 3/27/2012 4/10/2012 4/24/2012 5/8/2012 5/22/2012 6/5/2012 6/19/2012 7/3/2012 7/17/2012 7/31/2012 8/14/2012 8/28/2012 9/11/2012 9/25/2012 10/9/2012 10/23/2012 11/6/2012 11/20/2012 12/4/2012 12/18/2012 1/1/2013 1/15/2013 1/29/2013 2/12/2013 2/26/2013 3/12/2013 3/26/2013 4/9/2013 4/23/2013 5/7/2013 5/21/2013 6/4/2013 6/18/2013 7/2/2013 7/16/2013 7/30/2013 8/13/2013 8/27/2013 9/10/2013 9/24/2013 10/8/2013 10/22/2013 11/5/2013 11/19/2013 12/3/2013 12/17/2013 12/31/2013 1/14/2014 1/28/2014 2/11/2014 2/25/2014 3/11/2014 3/25/2014 4/8/2014 4/22/2014 5/6/2014 5/20/2014 6/3/2014 6/17/2014 7/1/2014 7/15/2014 7/29/2014 8/12/2014 8/26/2014 9/9/2014 9/23/2014 10/7/2014 10/21/2014 100 NASDAQ Composite Index Russell 2000 AMEX Cleantech Index NAATBatt Index Advanced Battery U.S. Index Advanced Battery Asia Index Tesla Motors Saft Johnson Controls 50 Exhibit 2: Indices Performance Index Dow S&P 500 NASDAQ Russell 2000 AMEX Cleantech Index Close on 11/3/2014 17,366.2 2,017.8 4,638.9 1,170.2 1,251.7 52-Wk High 17,395.5 2,019.3 4,641.5 1,213.6 1,447.1 % of 52-Wk High 99.8% 99.9% 99.9% 96.4% 86.5% LTM 11.5% 14.4% 18.0% 6.5% (3.4%) Performance YTD 29.5% 38.0% 49.1% 34.0% 22.6% Week 3.3% 2.9% 3.4% 4.7% 3.3% Source: Bloomberg and ThomsonOne © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 Exhibit 3: Supplier Performance (From January 3, 2012) 250 (Indexed to 100) 225 200 175 150 125 100 75 50 FMC Corp (Lithium Supplier) Polypore International (Separators) Russell 2000 Toray Industries Inc. (Coater supplier) 11/3/2014 9/3/2014 10/3/2014 8/3/2014 7/3/2014 6/3/2014 5/3/2014 4/3/2014 3/3/2014 2/3/2014 1/3/2014 12/3/2013 11/3/2013 9/3/2013 10/3/2013 8/3/2013 7/3/2013 6/3/2013 5/3/2013 4/3/2013 3/3/2013 2/3/2013 1/3/2013 12/3/2012 11/3/2012 9/3/2012 10/3/2012 8/3/2012 7/3/2012 6/3/2012 5/3/2012 4/3/2012 3/3/2012 2/3/2012 1/3/2012 25 0 Hirano Tecseed Co. (Coater supplier) Rockwood Holdings Inc. (Lithium Supplier) Sociedad Quimica y Minera de Chile S.A. Inoue Kinzoku Kogyo Ltd. (Coater supplier) Source: Bloomberg Exhibit 4: Commodity Prices Commodity LME Copper (Cash, $ per tonne) LME Lead (cash, $ per tonne) LME Nickel (cash, $ per tonne) Price on 11/3/2014 6,800 1,999 15,550 Price on 10/27/2014 6,800 1,987 14,620 Price on 10/3/2014 6,660 2,080 16,265 1 Week Change 0.0% 0.6% 6.4% 1 Month Change 2.1% (3.9%) (4.4%) Source: LME © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved 11/5/2014 10/5/2014 9/5/2014 8/5/2014 7/5/2014 Brent Crude Oil (spot price) 6/5/2014 5/5/2014 4/5/2014 2/5/2014 3/5/2014 1/5/2014 12/5/2013 11/5/2013 10/5/2013 Natural Gas (futures contract) 9/5/2013 8/5/2013 7/5/2013 6/5/2013 5/5/2013 4/5/2013 2/5/2013 3/5/2013 1/5/2013 12/5/2012 11/5/2012 10/5/2012 9/5/2012 8/5/2012 7/5/2012 6/5/2012 5/5/2012 4/5/2012 2/5/2012 3/5/2012 1/5/2012 Exhibit 5: Natural Gas and Crude Oil (From January 5, 2012) (Indexed to 100) 200 150 100 50 0 Source: EIA November 7, 2014 Vol. 5 No. 45 Executive Director’s Notes ADVANCED BATTERIES AND THE MIDTERM ELECTIONS On Tuesday of this week, Washington reshuffled with Republicans capturing a solid majority of the U.S. Senate. With their capture of the Senate, the Republicans control both houses of Congress and have the ability to pass legislation of their choosing. Given that Cleantech and renewable energy technologies have gotten caught up over the last six years in the debate about climate change, which has become heavily politicized, it is reasonable to ask: what effect will the Republican victory have on electricity storage and investments in advanced battery technology. The answer, I believe, is not much. Because the Republicans do not have enough votes in Congress to override a Presidential veto, their passing any legislation over the next two years will depend on either cutting a deal with President Obama or getting sufficient support among Democratic lawmakers in order to force the President’s hand or override a veto. Of the things that the Republicans have talked about doing that may bear on the future of the advanced battery business, here is how I think things will play out: Keystone XL Pipeline. Approval of the Keystone XL pipeline is low-hanging fruit. The pipeline has broad support even among Democrats and it is difficult to see the Republicans missing the chance to claim an early victory by pushing it through. During the recent campaign, pipeline proponents widely claimed that its approval would help bring down gasoline prices. Falling gasoline prices could crimp demand for electric vehicles. But no one familiar with the oil markets takes this seriously. Although the pipeline may create jobs in the United States and reduce U.S. dependence on petroleum producers located outside of North America, it will not in itself drive down oil prices or create any pressure to relax the fuel economy standards that are driving adoption of electrified drivetrains. In any event the falling price of conventional crude oil (see my commentary in the October 24, 2014 issue) is probably a greater threat to the future of Keystone XL than the Sierra Club. Relaxation of EPA Regulations. Republicans have been hostile to the EPA’s regulation of greenhouse gas emissions (GHG’s). There has been some speculation that if Republicans can limit the EPA’s authority to regulate GHG’s, coal will become a more attractive fuel for electricity generation and slow adoption of variable wind and solar power, which electricity storage technology helps accommodate. But even setting aside the debate over GHG regulation and climate change, coal burned in the traditional manner is a dirty fuel and, global warming beliefs aside, Republicans are likely to have little success cutting back the clean air regulations that have done much to improve air quality and impair the economics of coal. Wind and solar power are here to stay and get cheaper by the day. The associated demand for storage to balance their variability is here to stay as well. © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 Tax Reform. Tax reform is reportedly a top priority of the new Republican-led Congress and reform does not bode well for tax provisions such as IRC § 30D. IRC § 30D provides tax credits of up to $7,500 to purchasers of electric vehicles. Simplifying the tax code is something that almost everyone can agree on. But actually getting that done will be extraordinarily complicated and time consuming. The Internal Revenue Code is, famously, more than 5,000 pages long (2014 CCH edition, excluding regulations). Every single one of those pages, including the page on which IRC § 30D appears, was sponsored and fought for by some special interest group and its lobbyists. There is no reason to believe that all those special interest groups will go quietly into the night. Tax reform may be a good idea. But the realities of Washington politics probably dictate that IRC § 30D and the thousands of provisions like it will be around for some time. Battery Research. Developing new battery technologies takes decades, far longer than most private investors can afford to wait for a return on their investment. Accordingly, government investment in advanced battery research is essential to the continued development of that technology. The general hostility of Republicans to discretionary spending might appear to put continued government support for battery research at risk. But appearances can be deceiving. In fact, Republicans have generally been supportive of basic scientific research (excluding the Hell No Caucus—John Boehner’s words, not mine), particularly where the technology in question has important industrial or defense applications. After all the Reagan Administration funded SEMATECH, the public-private initiative that reinvigorated the U.S. semiconductor industry (and upon which NAATBatt was originally based). Some Republican legislators have criticized government spending on applied research vs. basic research on the grounds that applied research picks winner and losers in the private sector. But the dividing line between basic research and applied research is often hard to define. The battery industry will need to keep an eye on future budgets to make sure that battery research is not shortchanged. But the industry is likely to find a more sympathetic audience on the Republican side of the aisle than many may anticipate. The more things change, the more they stay the same. James J. Greenberger Executive Director November 7, 2014 © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 NAATBatt Membership Applications for 2014 _________________ Membership Applications and Dues Structure NAATBatt is accepting applications for membership from any company doing business in the advanced battery, automotive and electric utility industries and desiring to support the growth of the advanced battery market. Annual membership dues for 2014 are $7,500 for Platinum Members, $5,000 for Gold Members $2,500 for Silver Members, $1,000 for Research Institution/Government Members, and $500 for individual scientists and researchers. Affiliates of Platinum Member companies may join as Silver Members for the special price of $1,000 per year. Applicants may choose their level of membership based on their desired participation in NAATBatt. Membership runs for 12 months from the month in which an application is accepted. For details about our membership structure, including a list of the benefits of each class of membership, and a membership application, please click here. Why Join NAATBatt? NAATBatt is a trade association serving manufacturers of advanced electrochemical energy storage technology doing business in the United States. Our mission is to promote the commercial interests of our members by supporting developments in the science of and markets for advanced electrochemical energy storage technology consistent with the goals of enhancing energy efficiency, reducing petroleum dependence and enabling carbon-free electricity generation. We are a membership-based organization focused on delivering the following benefits to our members: Strategic market intelligence Access to new and emerging electrochemical energy storage technology Networking and better name recognition within the industry NAATBatt conducts multiple programs for its members over the course of the year. One of our most popular programs is our Members’ Site Visit meetings. At these meetings, one NAATBatt member hosts all other members for a tour of the hosting member’s business and production facilities. These tours give participants an unprecedented opportunity to learn about the needs and capabilities of individual member firms. Past hosts of these programs include General Motors, Cabot, EaglePicher, Duke Energy, EnerDel, Cabot Corporation, S&C Electric, and Magna Steyr. These programs are open to NAATBatt members only. NAATBatt members also get exclusive information about new products and new opportunities in the market. Each year, NAATBatt runs an Energy Storage Innovation Summit in conjunction with our annual meeting and conference. At the meeting, 20 jury selected emerging companies developing market-ready energy storage-related technologies make presentations directed to companies looking for licensing and acquisition opportunities. The Summit is the culmination of an industry-wide survey and solicitation for new technologies. NAATBatt members have the exclusive opportunity to participate in the selection process and get a first look at these new technologies. © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 NAATBatt members have access to ABC PatentEdge™, a database of patents and patent applications covering advanced batteries and ultracapacitors developed by NAATBatt in cooperation with the research firm IP Overviews. The database, and quarterly reports summarizing developments in the database, provide NAATBatt members with deep insight into where advanced battery and capacitor technology is going and where the major players in that market are really making their R&D bets. NAATBatt, as the only North American trade association focused on advanced electrochemical energy storage, is a frequent resource for companies looking for products or services involving advanced battery technology. NAATBatt routinely receives inquiries for products and services, which NAATBatt forwards, exclusively, to NAATBatt member firms. For example, NAATBatt recently received and transmitted to its members a solicitation for batteries from a California municipality looking to electrify its bus fleet. This inquiry was transmitted to NAATBatt members well before non-NAATBatt members learned of the opportunity. If you think that NAATBatt membership costs money, think about what not being a member costs. NAATBatt is the pre-eminent networking organization for professionals and companies working in the advanced battery industry. NAATBatt believes that good business relationships are founded on good personal relationships. From our members-only networking dinners, to our Advanced Battery Golf and Tennis tournament, to our annual meetings held at four and five-star resorts, we are dedicated to ensuring the development of strong personal and social relationships among professionals working in the industry. NAATBatt membership is meant to be fun, but it is fun with a serious purpose: Helping our members build bigger and more profitable businesses. NAATBatt is a not-for-profit trade association qualified under Section 501(c)(6) of the Internal Revenue Code and works for the benefit of the entire advanced battery and capacitor industry. Every dollar spent on NAATBatt memberships and programs goes to recouping program costs and to supporting activities intended to benefit the entire advanced battery industry. At a time when it seems that the only people making money on lithium-ion technology are professional conference organizers, the advanced battery industry needs to take control of its own market and its own future. NAATBatt exists to benefit the industry, not to benefit from the industry. Please join us. A short presentation describing NAATBatt’s activities as well as a membership application can be viewed by clicking here. © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45 Contact Information: National Alliance for Advanced Technology Batteries 122 South Michigan Avenue, Suite 1700 Chicago, Illinois 60603 (312) 588-0477 www.naatbatt.org Officers Steve Vechy Chairman [email protected] Zak Kuznar President [email protected] Davion Hill President-Elect [email protected] Randy Moore Chairman Emeritus [email protected] Ralph Brodd Chief Technology Officer [email protected] Rayna Handelman Director of Development [email protected] Dan Cass Vice President [email protected] Sandy Kane Chief Financial Officer [email protected] Michael Lew Head of Communications [email protected] Jim Greenberger Executive Director [email protected] © 2014 NAATBatt • Advanced Battery Weekly • All Rights Reserved November 7, 2014 Vol. 5 No. 45
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