Submitted By: Ajay Parab PGDM-Business Design (2012-14)
Battery electric cars are becoming more and more attractive with the advancement of new battery technology (Lithium Ion) that have higher power and energy density. The concept of battery electric vehicles is to use charged batteries on board vehicles for propulsion. Now a days Market requires batteries which are ecofriendly, long lasting and gives high performance. Mobile phones or Laptops or Radio etc. any Portable Electronic devices are in massive demand in market. Consumers now a days requires wireless environment. So there is need to manufacture high performance batteries.
What Happens To A123????
U.S. based battery maker A123 Systems, LLC develops and manufactures advanced Nanophosphate lithium iron phosphate (LiFePO4) batteries and energy storage systems that deliver high power and energy density, long life, and excellent safety performance. The company’s game-changing technology of using Nanophosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology. A123 had main three product arms which includes Cells, Modules and Systems. Cells includes AMP20 prismatic pouch, AHR32113 Cylindrical, ANR26650 Cylindrical, APR18650 Cylindrical. Modules include AHR32113 Power modules, AMP20 Energy modules, and ALM lead Acid replacement batteries. Systems includes Grid Storage Solution, Energy core pack (23 KWH), Power core pack (110 KW), 12 V Engine start battery, ALM lead acid replacement battery. A123 filed for bankruptcy, was gambling on technology that wasn’t advanced enough to help it overcome established manufacturers and compete with them. A123’s technology, based on nanoscale electrode powders, was safer and far more powerful than existing alternatives when it was introduced in 2006. The technology helped convince GM that lithium-ion batteries could be used in plug-in hybrids. It results in development of the Chevrolet Volt. But big battery makers quickly wedged up. While they couldn’t necessarily match A123’s performance in all areas, they came close enough to meet the needs of automakers. As a result, A123 lost the contract for the GM’s Volt to the Korean giant LG Chem, which used more conventional electrode materials but introduced a novel material to separate the electrodes and improve the safety of the batteries. Later then, A123 has signed several production contracts with major automakers, but those haven’t been very large orders. It will not enough for the company to operate its factories at full capacity, which would have brought down costs. Major contracts for vehicles such as the Nissan Leaf, Ford’s new Focus electric vehicle, and Toyota’s plug-in Prius all went to more established battery makers. And although A123’s technology was an improvement on existing batteries used in electric vehicles, it
wasn’t good enough to let such cars, or plug-in hybrids, compete widely with conventional vehicles. Though Lithium-ion batteries from A123 are more compact than the lead-acid and nickel–metal hydride batteries used in early generations of electric vehicles and hybrids remain expensive, accounting for perhaps $15,000 of the cost of a car. Electric vehicles are twice as expensive as their gasoline equivalents, in large part because of the batteries. A123 Marketing ABC goes wrong. Their wrong focus on the vision of an allelectric cars leads to failure. Cost of Electric vehicles is going high, compared to vehicles run on Gasoline. Despite having large capacity to produce batteries, due to less demand batteries will not sell. Consider Illustration: A tank with 100 pounds of gasoline, and a car will drag you 400 miles before stopping for a 10-minute refill. The same 100 pounds of lithium yields 40 miles and then a 10-hour...