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Voltronix 160Aha.
The U.S. is in an awkward position of having the brains behind most technology but relinquishing 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. When it comes to the mass manufacturing of batteries, Asia has a clear advantage but the U.S. still has a formidable think tank. If China is slowly bridging both, can the U.S. learn how to mass produce batteries competitively?
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 and pure development, they are held back by the steep costs of local production, especially compared to those found in Asia. One Asian company that has shown it can mass manufacturing in an affordable way has also become an innovation one, BYD. What makes BYD special, even different from its Chinese counterparts is that it has achived its success on its own, without government funds. 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. 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 at great expense. 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 could make very affordable.
The cons are that local wages in the U.S. are not competitive against those of Asia. Asian man power is more appealing to any manufacturer, and the West 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 and lower their wages? 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 and in the meantime, we can keep our eyes on how the government choses to award funds and who is building lab, as well as who will manufacturer them.
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