An array of 88 lithium ion batteries sits in the rear of this Johnson Controls i3 plug-in hybrid.There's a saying as the nation pushes for cleaner electric cars: The United States will end up trading dependence on Saudi oil for dependence on Asian batteries.
Most of the big players in advanced batteries - the ones used to power the cars of tomorrow - are from Japan, South Korea or China.
America's battery industry is in need of a shock. Enter Stimulus.
As part of the nearly $900 billion economic lifeline, lawmakers plan on spending $2 billion in loan guarantees and grants for makers of advanced batteries. They don't necessarily have to be U.S. companies that get the money, but they need to set up shop on American soil.
Industry observers have high hopes for the plan, but worry that the money won't be doled out fast enough or that it will be eaten up by a few big players.
Stimulus money: Not chump change
The money involved may seem small by stimulus standards, but for the nascent high-tech battery business it's serious cash.
Two billion is more money than what's flowed into the sector from venture capital and private equity firms over the last four years combined, said Heather Daniel, a power storage analyst at the research firm New Energy Finance.
"It could be a significant boost," said Daniel. "If there's a little guy that's got the technology, it could have big implications."
Most advanced batteries for plug-in hybrid electric vehicles, like the Chevy Volt set for debut in 2010, rely on lithium ion batteries.
Lithium batteries - where the ultra light metal lithium is used as the conducting material - are more efficient and lighter than the nickel-metal hydrate batteries currently used in the hybrid cars of today.
Having a light and efficient battery is essential if cars are to move from current hybrids - which use battery power only for low speed driving - to plug-in hybrids where battery power is the only thing turning the wheels.
Getting the right battery is key to making plug-in hybrids commercial - current batteries are still a bit too heavy and a bit too expensive. (There may also be an issue with getting enough lithium - much of it appears to be concentrated in a few South American counties, but that's another story.)
King of battery hill
The company or companies that nail the technology are potentially set for big profits and big hiring sprees. And currently, while many foreign firms have manufacturing operations in the United States, most of those companies are not headquartered here.
Japan's Panasonic, NEC, and GS Yuasa; South Korea's LG; and China's BYD are the main players in this market, and account for nearly all current lithium ion sales.
"The United States is alarmingly vacant from this list," said Rob Wilder, manager of the WilderHill clean energy index, an investment fund. "It's painful as a patriotic American to see just how far behind we are."
That said, U.S. firms are not out of the game.
Companies like Johnson Controls (JCI, Fortune 500), Ener1 (HEV), Maxwell (MXWL), Valence (VLNC), and privately held A123 Systems are noted for innovative, advanced-vehicle battery technology, if not a huge amount of current sales.
General Motors is working with A123 Systems on the Volt, although it seems LG will make most of the initial batteries.
There's also an array of smaller American startups that are scraping by while they search for venture capital funding.
Wilder said that for the stimulus money to be effective, it should be available to these smaller companies that might have good designs but lack lobbying power.
"They just don't have the resources to get the money like GM or Ford, who came late to the game anyway," he said.
What are companies' eligibility requirements for this money, what projects will get funded, and over what period of time is what the industry wants to know, said Joseph Muscat, a clean tech director at the accounting and advisory firm Ernst & Young.
A spokesperson for the House subcommittee that wrote the battery portion of the bill said those specifics would be hammered out by the Department of Energy if and when the bill gets approved.
"Clearly, it's a help," said Muscat. "There are a lot of companies here, and it will be interesting to see how the technology plays out."
Most of the big players in advanced batteries - the ones used to power the cars of tomorrow - are from Japan, South Korea or China.
America's battery industry is in need of a shock. Enter Stimulus.
As part of the nearly $900 billion economic lifeline, lawmakers plan on spending $2 billion in loan guarantees and grants for makers of advanced batteries. They don't necessarily have to be U.S. companies that get the money, but they need to set up shop on American soil.
Industry observers have high hopes for the plan, but worry that the money won't be doled out fast enough or that it will be eaten up by a few big players.
Stimulus money: Not chump change
The money involved may seem small by stimulus standards, but for the nascent high-tech battery business it's serious cash.
Two billion is more money than what's flowed into the sector from venture capital and private equity firms over the last four years combined, said Heather Daniel, a power storage analyst at the research firm New Energy Finance.
"It could be a significant boost," said Daniel. "If there's a little guy that's got the technology, it could have big implications."
Most advanced batteries for plug-in hybrid electric vehicles, like the Chevy Volt set for debut in 2010, rely on lithium ion batteries.
Lithium batteries - where the ultra light metal lithium is used as the conducting material - are more efficient and lighter than the nickel-metal hydrate batteries currently used in the hybrid cars of today.
Having a light and efficient battery is essential if cars are to move from current hybrids - which use battery power only for low speed driving - to plug-in hybrids where battery power is the only thing turning the wheels.
Getting the right battery is key to making plug-in hybrids commercial - current batteries are still a bit too heavy and a bit too expensive. (There may also be an issue with getting enough lithium - much of it appears to be concentrated in a few South American counties, but that's another story.)
King of battery hill
The company or companies that nail the technology are potentially set for big profits and big hiring sprees. And currently, while many foreign firms have manufacturing operations in the United States, most of those companies are not headquartered here.
Japan's Panasonic, NEC, and GS Yuasa; South Korea's LG; and China's BYD are the main players in this market, and account for nearly all current lithium ion sales.
"The United States is alarmingly vacant from this list," said Rob Wilder, manager of the WilderHill clean energy index, an investment fund. "It's painful as a patriotic American to see just how far behind we are."
That said, U.S. firms are not out of the game.
Companies like Johnson Controls (JCI, Fortune 500), Ener1 (HEV), Maxwell (MXWL), Valence (VLNC), and privately held A123 Systems are noted for innovative, advanced-vehicle battery technology, if not a huge amount of current sales.
General Motors is working with A123 Systems on the Volt, although it seems LG will make most of the initial batteries.
There's also an array of smaller American startups that are scraping by while they search for venture capital funding.
Wilder said that for the stimulus money to be effective, it should be available to these smaller companies that might have good designs but lack lobbying power.
"They just don't have the resources to get the money like GM or Ford, who came late to the game anyway," he said.
What are companies' eligibility requirements for this money, what projects will get funded, and over what period of time is what the industry wants to know, said Joseph Muscat, a clean tech director at the accounting and advisory firm Ernst & Young.
A spokesperson for the House subcommittee that wrote the battery portion of the bill said those specifics would be hammered out by the Department of Energy if and when the bill gets approved.
"Clearly, it's a help," said Muscat. "There are a lot of companies here, and it will be interesting to see how the technology plays out."
Economic rescue plan would increase payments and extend benefits for the unemployed. It would also provide access to subsidized health insurance.
The federal stimulus package is designed to create millions of jobs, but it also provides many benefits to those who just can't find work.
The measure, which congressional leaders hope to finish next week, currently proposes:
increasing and extending unemployment insurance;
expanding coverage to more low-income and part-time workers;
subsidizing health insurance coverage;
and recharging state unemployment insurance trust funds, which are running dry as layoffs climb.
A growing number of people are depending on unemployment benefits, with continuing jobless claims hitting a record 4.79 million in late-January. The figures are sure to grow with companies shedding more than 250,000 jobs so far this year.
The federal government releases January's national unemployment rate on Friday. Currently at 7.2%, it is expected to rise to 7.5%.
Bigger checks: The unemployed would see their checks rise by $25 a week, paid for with federal funds. The current average weekly benefit is $297.
The increase would have a big impact on those at the lower end of the pay scale who are likely to spend it all, said Wayne Vroman, economist with the Urban Institute.
Mike Grigsby of Portland, Ore., would certainly welcome another $25 a week. The political organizer is scraping by on a weekly pre-tax benefit of $304, which barely covers his $545 monthly rent and other expenses.
"I could have fresh fruits and vegetables in the house, instead of canned goods," said Grigsby, 37, who has been unemployed since November. "I could buy a new interview suit at Goodwill."
The Senate version would also forgive income taxes on the first $2,400 of benefits.
Extended benefits: The bill push back the deadline to apply for extended benefits.
The jobless typically get 26 weeks of unemployment insurance, paid for by the states. Last summer, the Bush administration and Congress added an additional 13 weeks of benefits, paid for by the federal government.
In November, federal officials added another seven weeks of benefits in all states. Those who live in states with unemployment rates higher than 6% -- 34 states meet that criteria as of December -- could receive a total of 20 additional weeks.
The federal program is set to expire in March, but under the stimulus package, the jobless could apply for the extended federal benefits through Dec. 31.
With the deepening recession making it harder for people to land new positions, extending benefits is crucial, said Heidi Shierholz, economist at the Economic Policy Institute.
Randall Paynter depends on his $320 weekly unemployment check to support his family. Even though his wife works full-time, they are living on half of what they did before Paynter lost his job as a warehouse supervisor in May.
A Rome, Ga., resident, Paynter is back in school studying computers in hopes of getting a job in automated manufacturing. But he doesn't graduate until 2010 so he hopes the federal government keeps extending the benefits.
"I need as much time as I can get to get retrained," said Paynter, 54, who has an 11-year-old son.
Expanding coverage: The package would enact the Unemployment Insurance Modernization Act, which provides $7 billion in incentives for states to expand the ranks of jobless that qualify for benefits.
States that allow workers to count more recent wages in their applications could share in $2.3 billion. The remaining funds would go to states that adopt additional reforms, including providing benefits to those seeking part-time work and those who quit because of a family member's illness or relocation of a spouse.
States would also divvy up $500 million to cover administrative costs.
This expansion would allow more women, part-timers and low-wage workers - who are often the most vulnerable of the unemployed - to collect benefits, Vroman said.
Subsidized access to health insurance: The bill would allow many workers to continue coverage under their former employer's health insurance, known as Cobra, by subsidizing 65% of the premiums for as long a year. The benefit would apply to those who lose their jobs between September 2008 and the end of 2009.
The typical family premium under Cobra is $1,000, according to House Speaker Nancy Pelosi, D-Calif.
The House bill would also allow workers who are 55 and older, or have been with their employer for at least a decade, to extend their Cobra until they become eligible for Medicare or secure coverage with another company.
Also, those unemployed whose family's gross income is below 200% of the federal poverty guidelines could temporarily receive Medicaid, under the House bill. The benefit, paid for by the federal government, would apply to those who lose their jobs between September 2008 and the end of 2010.
Assistance for states: The package would temporarily waive interest payments and accrual of interest on loans taken by states to pay unemployment benefits. Five states - Indiana, Michigan, New York, Ohio and South Carolina - are currently borrowing from the federal government.
Safety and stimulus
Advocates for the jobless are hailing the provisions in the package, saying they will help those struggling to survive while looking for work, said Christine Owens, executive director of the National Employment Law Project.
On top of that, it will help stimulate the economy, since most people receiving unemployment benefits spend the money quickly, economist said.
The measure, which congressional leaders hope to finish next week, currently proposes:
increasing and extending unemployment insurance;
expanding coverage to more low-income and part-time workers;
subsidizing health insurance coverage;
and recharging state unemployment insurance trust funds, which are running dry as layoffs climb.
A growing number of people are depending on unemployment benefits, with continuing jobless claims hitting a record 4.79 million in late-January. The figures are sure to grow with companies shedding more than 250,000 jobs so far this year.
The federal government releases January's national unemployment rate on Friday. Currently at 7.2%, it is expected to rise to 7.5%.
Bigger checks: The unemployed would see their checks rise by $25 a week, paid for with federal funds. The current average weekly benefit is $297.
The increase would have a big impact on those at the lower end of the pay scale who are likely to spend it all, said Wayne Vroman, economist with the Urban Institute.
Mike Grigsby of Portland, Ore., would certainly welcome another $25 a week. The political organizer is scraping by on a weekly pre-tax benefit of $304, which barely covers his $545 monthly rent and other expenses.
"I could have fresh fruits and vegetables in the house, instead of canned goods," said Grigsby, 37, who has been unemployed since November. "I could buy a new interview suit at Goodwill."
The Senate version would also forgive income taxes on the first $2,400 of benefits.
Extended benefits: The bill push back the deadline to apply for extended benefits.
The jobless typically get 26 weeks of unemployment insurance, paid for by the states. Last summer, the Bush administration and Congress added an additional 13 weeks of benefits, paid for by the federal government.
In November, federal officials added another seven weeks of benefits in all states. Those who live in states with unemployment rates higher than 6% -- 34 states meet that criteria as of December -- could receive a total of 20 additional weeks.
The federal program is set to expire in March, but under the stimulus package, the jobless could apply for the extended federal benefits through Dec. 31.
With the deepening recession making it harder for people to land new positions, extending benefits is crucial, said Heidi Shierholz, economist at the Economic Policy Institute.
Randall Paynter depends on his $320 weekly unemployment check to support his family. Even though his wife works full-time, they are living on half of what they did before Paynter lost his job as a warehouse supervisor in May.
A Rome, Ga., resident, Paynter is back in school studying computers in hopes of getting a job in automated manufacturing. But he doesn't graduate until 2010 so he hopes the federal government keeps extending the benefits.
"I need as much time as I can get to get retrained," said Paynter, 54, who has an 11-year-old son.
Expanding coverage: The package would enact the Unemployment Insurance Modernization Act, which provides $7 billion in incentives for states to expand the ranks of jobless that qualify for benefits.
States that allow workers to count more recent wages in their applications could share in $2.3 billion. The remaining funds would go to states that adopt additional reforms, including providing benefits to those seeking part-time work and those who quit because of a family member's illness or relocation of a spouse.
States would also divvy up $500 million to cover administrative costs.
This expansion would allow more women, part-timers and low-wage workers - who are often the most vulnerable of the unemployed - to collect benefits, Vroman said.
Subsidized access to health insurance: The bill would allow many workers to continue coverage under their former employer's health insurance, known as Cobra, by subsidizing 65% of the premiums for as long a year. The benefit would apply to those who lose their jobs between September 2008 and the end of 2009.
The typical family premium under Cobra is $1,000, according to House Speaker Nancy Pelosi, D-Calif.
The House bill would also allow workers who are 55 and older, or have been with their employer for at least a decade, to extend their Cobra until they become eligible for Medicare or secure coverage with another company.
Also, those unemployed whose family's gross income is below 200% of the federal poverty guidelines could temporarily receive Medicaid, under the House bill. The benefit, paid for by the federal government, would apply to those who lose their jobs between September 2008 and the end of 2010.
Assistance for states: The package would temporarily waive interest payments and accrual of interest on loans taken by states to pay unemployment benefits. Five states - Indiana, Michigan, New York, Ohio and South Carolina - are currently borrowing from the federal government.
Safety and stimulus
Advocates for the jobless are hailing the provisions in the package, saying they will help those struggling to survive while looking for work, said Christine Owens, executive director of the National Employment Law Project.
On top of that, it will help stimulate the economy, since most people receiving unemployment benefits spend the money quickly, economist said.
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