"I Will Not Cede the Wind or Solar or Battery Industry to China." Ooops. Never Mind

Bertel Schmitt
by Bertel Schmitt

In his 2012 State of the Union address, President Barack Obama said this to critics of his lavish green technology initiative:

“I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here. “

Instead, battery manufacturers first get financed by double-green government handouts, then they are ceded. Says Reuters:

“A123 Systems Inc on Wednesday became the second U.S. government-backed battery maker this year to go overseas for a lifeline – and it turned to China. Auto parts supplier Wanxiang Group will take a controlling interest and invest $450 million in the Massachusetts-based battery maker, which faced running out of cash by the year-end.

Earlier this year, Ener1 Inc, another battery maker that received a government green technology grant, emerged from Chapter 11 bankruptcy under the control of Russian investor Boris Zingarevich. New York-based Ener1 is also a joint-venture partner in China with a Wanxiang subsidiary.”

Reuters says the government-supported boondoggle that is now handed to the Chinese for further exploitation was a pipe dream at best, or a giant lie at worst:

“ A123 promised to create 38,000 U.S. jobs, including 5,900 at its own plants. A123 said on Thursday it has 1,300 workers.

Theodore O’Neill, a former equities analyst with Wunderlich Securities, said A123 “built a factory that’s big enough to meet demand that’s probably not going to materialize until 2020 … They built it much larger than the market turned out to need.”

In what appears to be the Fast And Furious of government boondoggles, the battery industry is first propped up with government money, then the technology is sold to China.

What’s more, the enemy already seems to have lost interest in the game. Shortly after the state of the union address, it was reported that China will “put an end to blind expansion in industries such as solar energy and wind power” and instead focus on old standbys such as nuclear and shale gas.”

Batteries of course are agnostic to where the juice comes from. Obama’s adversaries are less cavalier. “Once again it appears the Department of Energy and the Obama administration have failed to secure sensitive taxpayer-funded intellectual property from being transferred to a foreign adversary, which raises serious national security issues,” said Rep. Cliff Stearns. Stearns is a Florida Republican and chairman of the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Oldyak Oldyak on Aug 11, 2012

    Let the Chinese have them...and loose billions of dollars propping them up. Good deal for the U.S. Bad for the Chi-Coms. Get a Kroger card and get a discount on your gas! The government doesn't control Kroger,nor do the Chi-Coms. I really wish battery prices would come down though..I need a new one for my son`s 1993 Lumina.

    • See 1 previous
    • Duncan Duncan on Aug 11, 2012

      @Luke42 Agreed. Lithium battery technology sure appears to have legs. If A123 can drive down costs (lower cost hazmat disposal would have a big impact) they'll have a huge market. There are a lot of applications for advanced battery technology outside of BEVs.

  • Herm Herm on Aug 11, 2012

    I can just see the articles 20 years from now when most cars are electric and there are NO battery manufacturers in the US.

  • AZFelix Hilux technical, preferably with a swivel mount.
  • ToolGuy This is the kind of thing you get when you give people faster internet.
  • ToolGuy North America is already the greatest country on the planet, and I have learned to be careful about what I wish for in terms of making changes. I mean, if Greenland wants to buy JDM vehicles, isn't that for the Danes to decide?
  • ToolGuy Once again my home did not catch on fire and my fire extinguisher(s) stayed in the closet, unused. I guess I threw my money away on fire extinguishers.(And by fire extinguishers I mean nuclear missiles.)
  • Carson D The UAW has succeeded in organizing a US VW plant before. There's a reason they don't teach history in the schools any longer. People wouldn't make the same mistakes.
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