Despite recent news of lower-than-expected sales numbers for large format batteries – used in vehicles and other applications such as energy storage for the grid – the market for advanced batteries is still growing and is projected to grow at a steady pace in North America and globally.
Micro-hybrids, for instance, are expected to gain a significant automotive battery market share in the next five to 10 years, in large part due to start-stop systems and increasingly stringent Corporate Average Fuel Economy (CAFE) standards. Most of these systems are expected to be absorbent glass mat (AGM) batteries – a form of lead-acid technology. These systems still employ a combustion engine, but will also use a battery-powered mechanism that allows the engine to be shut off when a vehicle is idle or braking. A basic micro hybrid system would cost a consumer roughly $300 more, but save $80 annually in gas allowing for an approximate three to four-year payback. NextEnergy expects a U.S. market of three to five million start-stop units to be sold by 2015.
Michigan-based battery manufacturing firms are challenged to find domestic suppliers to source key materials, components and capital equipment. These firms are motivated to identify and secure local options now and in the future and are willing to develop reputable supply partners to fully transition their capabilities to serve a new industry.
On March 21, the Michigan Chemistry Council and NextEnergy will sponsor the Advanced Battery Opportunities for Michigan Chemical Manufacturers and Other Suppliers event, held at the Anderson House office building in Lansing. The event will outline these opportunities and provide Michigan companies with the tools and relationships they need to be successful in this industry.
During this important event, attendees will:
- Hear from Dr. Peter Faguy, Technical Expert, Department of Energy, Energy Storage Research & Development (R&D), about new federal funding opportunities
- Hear directly from advanced battery manufacturing firms’ procurement staff who are currently seeking local suppliers of battery cell/pack materials, components, sub-systems, and production/assembly equipment.
Whether you are a current supplier to the advanced battery industry, or are interested in making the transition, now is the time to act. The Department of Energy (DOE), Department of Commerce (DOC) and Federal government are actively supporting battery supply chain and product development for advanced batteries to ensure the U.S. is positioned as a leader in this industry. This support includes the release of a number of new funding opportunities, such as the Department of Energy Vehicle Technologies Program (VTP), Robust Affordable Next Generation EV-Storage (RANGE), and the energy product manufacturing scale up program: 48c Phase II Tax Credit.
The ARPA-E RANGE grant and 48C Phase II tax credit represent a combined $170 million opportunity for manufacturing and R&D firms, and the forthcoming DOE VTP funding opportunity announcement will offer another $53 million in funding from the DOE’s Office of Energy Efficiency and Renewable Energy (EERE) for projects that support the President’s “EV Everywhere” challenge.
Make sure to join us in Lansing on March 21 with your team to learn more.
For a full event agenda and to register visit: nextenergy.org/michemevent