Posted: April 4, 2008

This final group of lithium-ion battery developers includes another new classmate, Valence Technology, plus a company that really improved its performance, Automotive Energy Supply Co., according to “Professor” Mike Millikin of the authoritative web site Green Car Congress.

Maxwell Technologies – This small public California-based company again got an “A” for its work with ultracapacitors, which are battery-like devices that ultimately may be used in combination with, or instead of, lithium-ion batteries. Millikin reiterated what he said seven months ago that Maxwell “clearly is a leader in ultracpacitors.” But he also sounded a warning. He said Maxwell must drive down the cost of its ultracapacitor pack. Asked whether he thinks the company will be successful, Millikin said only, “Maybe,” thus implying that Maxwell’s “A” could be in jeopardy the next time around.

Automotive Energy Supply Co. – This company, a joint venture between Nissan Motor and NEX Corp. that is only a little over a year old, jumped from a “B” to an “A-.” Millikin explained that the firm is benefiting from Nissan’s strong new emphasis on electrified transportation. It is further benefiting from “Project Better Place,” a joint Nissan-Renault plan for the mass market introduction of plug-in hybrid vehicles in Israel. These cars reportedly will use lithium-ion batteries made by Automotive Energy Supply that will have driving performance similar to a 1.6-liter gasoline engine.

Panasonic EV – Millikin again gave this joint-venture company an “A,” although he indicated that it needs to start doing more. Panasonic EV is a joint venture between Matsushita and Toyota and, according to Millikin, has the most established lithium-ion chemistry, plus a tailor-made commercial relationship. But while classmates including A123, Hitachi, Lithium Technology and Automotive Energy Supply all made strides over the last several months, nothing happened with Panasonic, Millikin said.

Valence Technology – The third new member of the class starts off with a lot of momentum, earning a full “A” from Millikin. He emphasized Valence’s new deal with Tanfield Group Plc of Great Britain under which Valence will manufacture and supply lithium phosphate battery packs for Tanfield’s all-electric commercial delivery vehicles. The vehicles will be made by Tanfield unit Smith Electric Vehicles, the world’s largest manufacturer of electric vans and trucks. Given that Smith plans to expand production, including from its first U.S. manufacturing facility, Valence, despite being a newcomer to the class, has very bright prospects, Millikin suggested, making it yet another battery developer investors will want to watch closely.