The U.S. is in a awkward position of having the brains behind a lot of battery technology but relinquishes the mass production to overseas. How it chooses to spend funds for local production will have far reaching consequences for the future.
The gist is that the U.S. is at a crossroad. It has a healthy think tank when it comes to technological innovations but is at a clear disadvantage when it comes to mass producing its technology competitively. The production has been relinquished to Asia for the past decades that achieves it with lowered cost, even after including shipping.
U.S. Battery Technology. The U.S. is home to some formidable battery technology contenders, such as EnerDel, A123 Systems, etc, to name a few. While these companies perform very well in the innovation department, they are held back by the steep costs of local production, especially compared to those found in Asia. One Asia company that has shown the capability of affordable mass manufacturing has also become an innovation tank, BYD. Can the U.S. compete in this department or should it just make the best of the current situation? A tricky global balance is at stake.
Pros And Cons. Though what looks like an ego battle, of wanting to keep production within the country, has obvious pros and cons. Foremost, keeping production within the nation would create jobs and ramp up the economy. While it may be debatable how any government chooses to stimulate local production, if done properly, it would have great benefits. Cost of transportation and pollution associated with local battery manufacturing would be slashed. Instead of shipping heavy batteries overseas with boat spewing pollutants, local manufacturing makes sense.
The cons are that local wages in the U.S. are not competitive against those of Asia. Asian man power work for less, and the West, at least this stage just cannot compete. Will the global financial meltdown lower the west’s expectation of higher wages? And if so, will it not also effect Asia’s worker’s expectations? It is hard to say yet. Within six months, we should have a much clearer picture. However, one question does remain. Are we not disturbing a global balance by removing Asia’s mass production? At this stage of the game, it is anyone’s guess.