energy storage: chrysler - a123 alliance likely to spark interest in sector - energy storage devices

On April 6, Chrysler announced the formation of a strategic alliance, A123 Systems, Inc.
Will be the main battery supplier for Chrysler's planned plug line
Electric cars.
This is an important step in rebuilding the domestic battery manufacturing infrastructure in the United States, and both companies should be congratulated.
The next step I see in my vague crystal ball is to complete the upcoming IPO of a123 and announce $1 for a123.
The 8 billion loan application under the Ministry of Energy's Advanced Technology Vehicle Manufacturing program has been approved.
If the foundation is laid well, everything will come together soon.
I have been following A123 since it first filed the SEC registration statement.
Although the market crash last fall delayed the IPO, the company's team stuck to the end and announced plans for $2.
At the beginning of January, there were 3 billion battery manufacturing plants.
To help pay for the planned facilities, A123 applied for $1.
Department of Energy's 8 billion loans under advanced vehicle technology projects.
In a previous article, the article focused on A123, Ener1 (HEV)
Tesla Motors and integrity Motors, I question how to approve these requests without proving that the applicant is willing to purchase their products.
Monday's statement gave a clearer picture of the negotiations that have been going on behind the scenes for months.
Thirty years ago, Michael Milken popularized the use of a number of letters that stated that Drexel Burnham Lambert "was very confident" that they could be arranged in accordance with specific terms if the underlying business transaction could be negotiated
These letters then serve as the basis for negotiations between sellers, bankers and other necessary parties.
My guess is that A123 and Chrysler have used the same mechanism quite effectively.
If I'm right, Chrysler's release is only the first step and others will follow up soon.
From the perspective of securities regulation, A123 has almost completed the IPO filing.
The registration statement went through three rounds of employee review and comments last year and was basically ready by the end of November.
Update the registration statement to include the year-
Closing financial information and disclosing the terms of the agreement with Chrysler and the terms negotiated with DOE should be fairly simple.
So the only critical Time issue seems to be the final decision of the Department of Energy, the amendment to the registration statement and the roadshow.
This is good news for the energy storage industry, because as I said in last August, there is nothing like
Introduction The IPO roadshow is a new way to attract the market's attention to energy storage and marks the beginning of a major upward trend in a base industry that has been undervalued for many years.
It should be an interesting spring after an unusually difficult winter.
In addition to the visibility boost I think the Chrysler-A123 alliance will bring to the storage industry, there may be a second good news for other energy storage device manufacturers.
ATVM plans to allocate $22.
Pay $5 billion to major manufacturers and set aside another $2.
5 billion is used to lend to "small car and parts manufacturers" with less than 500 employees.
While I initially questioned whether A123's loan request was part of the allocation of large manufacturers or a small manufacturer on hold, it is now clear that A123 has been working with Chrysler for several months.
So I think it's safe to assume $2. 5 billion set-
Small manufacturers will remain intact.
While I still doubt how small company applicants can meet the strict business feasibility requirements I discussed in my previous article on ATVM loan plans, for other ATVM loan requests, similar behind-the-scenes negotiations are likely to be underway.
While the Chrysler-A123 alliance will almost certainly spark a wave of interest in energy storage, I think it's important for investors to keep in mind that, the best opportunities are often found in the least glamorous stocks.
The energy storage industry is a target-rich environment without a single "silver bullet" technology solution.
The root causes of the challenge include: the informed consensus is that in the next few years, companies in the energy storage industry will increase their annual revenue from $30 billion to $100 billion or more.
When I trace some pure
Focus on billions of gaming listed companies
In these market segments, no technology has a wide range of practicality in the entire energy storage field.
So it's easy to imagine a future where dozens of strong competitors will thrive by serving a different Billion People
Dollar segment
Over the past nine months, I 've written a total of 47 articles about the energy storage industry and the major pure gaming companies that are active in the industry.
The entire archive can be accessed from my Seeking Alpha author page.
Although I personally have a strong preference for lead
Acid technology, I also have a group of loyal readers who helped complete the discussion, resulting in a clear and informative picture.
If you look at storage for the first time, you may find some of my analysis useful.
Disclosure: The author is a former director and executive of Axion Power International (AXPW. OB)
And hold large long-term positions in its stock.
He also holds a senior position in active service (ACPW)
Exide technology (XIDE), Enersys (ENS)
And ZBB Energy (ZBB).