Posted: April 2, 2008

It’s been seven months since Michael Millikin, editor of the authoritative automotive web site Green Car Congress, handed out his first set of report card grades to leading developers of lithium-ion car batteries for the coming generation of electrified transportation. Millikin is back, ready to tell EnergyTechStocks.com the new grades he’s just handed out to the nine original members of his class, plus three newcomers he thinks show a lot of potential.

Two of the original nine showed enough promise to have their grades raised. Six of the other seven got the same grade as last time, while the seventh got another “incomplete.” Two of the three new class members – one from the United States, the other Japan — started off with an “A,” while the third – a new kid from Germany – started off with a “B.”

It’s important to keep track of the progress advanced battery developers are making because much is expected of the coming generation of “mild” hybrid and “plug-in” hybrid vehicles. With global oil supplies being stretched ever tighter by sharply rising demand, especially in China and India, the need for vehicles that can run on electricity keeps growing. Mild hybrids, which don’t plug in but provide better mileage than current hybrid cars are the next step, to be followed by vehicles that run on electricity supplied from an ordinary electrical outlet. Both, but especially plug-ins, promise to reduce nations’ gasoline consumption and enhance their energy security. Both also are weapons in the global war against greenhouse gas emissions (GHG).

Let’s read the roll, four names at a time, starting with:

A123 Systems – This private Massachusetts company got an “A” in the first marking period and does so again. In fact, the way Millikin described A123’s recent work, it sounded as if the company nearly got an “A+.” In an interview, Millikin highlighted that A123 has added people and has expanded its commercial relationships. Millikin reiterated his personal belief that if and when A123 goes public, it will be a huge success.

Altair Nanotechnologies – Although Millikin thought Altair might improve its grade, this small public company once again got only a “B+.” Millikin said the company still needs to improve its commercial relationships with automakers, which in his opinion will be just as crucial to the success of a lithium-ion car battery developer as its technology. Millikin added that he continues to believe that Altair’s technical performance is good.

Compact Power – Compact once again got an “A,” but Millikin served notice that this company needs a deal with an automaker for a commercial demonstration of its technology. Compact is a Troy, MI-based subsidiary of Korean battery manufacturer LG Chem.

EEStor – The mystery man in Millikin’s class once again got an “incomplete.” While most professors wouldn’t allow a student to have back-to-back incompletes, Millikin said, “What they’re trying to do is difficult.” He actually gave EEStor credit for keeping its mouth shut instead of issuing glowing press releases about itself. Being silent makes Millikin think, “They’re making a serious effort.” According to press reports, EEStor is working on a new method for making ultracapacitors, which are battery-like devices that may wind up in electric vehicles instead of, or in combination with, lithium-ion batteries.

Coming tomorrow, April 1, in Part 2 – Report card grades for: Ener1, Hitachi, Johnson Controls and Lithium Technology Corp.