I met Ake Almgren in early April after getting a tour of International Battery’s manufacturing plant in Allentown, Pennsylvania. International Battery is an oddity: the company has imported machinery and technology from China, and has begun using that machinery and technology to build batteries here in the U.S.

While still not producing batteries in commercial quantities, the company, backed by venture capital money from Digital Power Capital, is working on the production of large-format lithium ion batteries that could be used in the transportation sector, as well as in military applications and in many industrial applications. Now employing about 50 people, International Battery plans to begin ramping up its production by the end of this year.

Almgren joined the company in March 2009. He has been involved in both traditional and new energy technology projects business for most of his long career. He is the former CEO of Capstone Turbine. Before Capstone he led several ABB business entities including ABB Power T&D Co. Since 2003 he has served on the board of PJM, the regional transmission organization that manages the movement of wholesale electricity in 13 states and the District of Columbia. Originally from Sweden, he holds a Ph.D. in engineering.

RB: For more than a century, consumers have been promised that viable electric cars are just around the corner. But the problem has always been battery technology. Have things fundamentally changed? If so, why?

AA: There is by the nature of the huge amounts of capital invested in both the incumbent automotive technology and infrastructure, quite [a lot of ] inertia to overcome. Any change will take time. It may be too strong to talk about one fundamental change, but there is a convergence of several factors, for example, progress in battery technology, growing concerns about global warming, and more support for less foreign energy dependence, that may initiate a change.

RB: Why are lithium ion batteries so important? That is, what makes their chemistry work better than other batteries like nickel-metal-hydride?

AA: For electric and hybrid vehicles, [the] name of the game is cost and energy density of the batteries. Safety, reliability and life are perquisites for all batteries. The lithium ion batteries represent a substantial improvement in energy density, both gravimetrical and volumetric.

RB: What is International Battery doing that gives it an edge over other battery makers?

AA: We make truly large format prismatic battery cells, which is key to achieve economy of scale. We manufacture in the US and our manufacturing process is significantly more environmentally friendly.

RB: When I was in Allentown, your colleague, Phil Charatz, made a good point about the cost of batteries and electric cars. He said that when buying an electric car, consumers are in essence, buying the fuel upfront. By purchasing the battery, they are paying for the fuel they will use in advance. Do you agree with that statement? And does it make economic sense for consumers to make a relatively large payment for electricity upfront rather than pay for their fuel as they do, as is now done with traditional internal combustion engines?

AA: Phil says it well. Ideally as customers we should always try to be rational and look [at] what would give us the lowest lifetime cost. However, in reality our wallets may not always allow us to do that. The first cost matters. That’s why it will initially be important with incentives such as the tax credit. As volumes grow and costs come down, there will be less need for subsidies. Good examples [as to] how it may work are photovoltaics and wind power. Without the strong support those technologies have received, they would not have come as far as they have.

RB: Another thing that Phil Charatz said stuck in my mind: there are no international standards for battery sizes. Given the amount of standardization in other industries – USB in computers, tire sizes in automobiles, etc – wouldn’t standardization help the battery industry mature?

AA: What would help the industry is standards on voltage levels, communication protocols, connectors, etc, i.e. what simplifies the integration of batteries into vehicles as well stationary applications. I am also convinced that the industry will move fast in standardizing these items as was demonstrated recently with the plug-in connector for vehicles. At the same time I believe it is important to allow for flexibility in sizes. The technology is still developing and flexibility will benefit innovation and customization. As the technology matures, we will probably see more standardization also in terms of the format of the batteries.

RB: One aspect of the lithium-ion battery business that is seldom discussed is recycling. The lead-acid battery sector appears pretty efficient at recycling and the industry has standardized with fees for collection and disposal. What are the challenges in recycling lithium ion batteries? Is there any international consensus on how to deal with this new stream of electronic waste?

AA: Technically recycling lithium ion batteries are probably easier to recycle than lead acid batteries. Companies that can recycle lithium ion batteries are already in operation. The challenge is to see it expanded to the same recycling infrastructure as for the lead acid batteries. Reasonably it will develop as the use of lithium batteries will grow.

RB: You believe in the idea that V2G, that is, vehicle-to-grid electricity storage can work. There are, of course, a lot of skeptics about that concept. Why do you think it will be viable?

AA: Without underestimating the challenges and avoiding any hype, I believe that the simple fact that there is excess power generation capacity at nighttime and that with more wind and sun power connected to the electric grid, there is a win-win opportunity. By aggregating the energy storage capabilities of the batteries of the plug-in vehicles, the electric system can be run more efficient. For the car owner it can translate to a “fuel cost” of corresponding to about 60 cents per gallon. Chairman Wellinghoff of FERC has also pointed at a potential direct income stream from providing (power) regulation services. It could be in the magnitude of $2,000 per year. In all fairness it is a limited market only available in RTO/ISOs, but significant enough to help get things started.

RB: Your website says that your large format batteries can store about 100 watt-hours of electricity per kilogram (Wh/kg) of battery weight. From what I’ve read, that’s not a dramatic improvement over other lithium ion batteries. What is the theoretical energy density that you can get from lithium ion batteries? And what is the top energy density for batteries that International Battery is making?

AA: This is in many aspects evolutionary development. With our lithium iron phosphate battery cells we see 100 Wh/kg and 210 Wh/l (watt-hours per liter) as realistic targets to achieve this year. It can probably be developed further, but for a major step forward, I believe one has to start looking at a new lithium chemistry.

RB: One of the key challenges for any battery installation is the battery management system, which must make sure that each cell in the battery pack is operating within safe ranges of temperature, voltage and charge/discharge. How does International Battery approach that aspect of the system?

AA: Correct. The battery management system (BMS) is an integral part of any lithium battery system. International Battery has developed its own BMS. We regard it a core competence, but we will also be open for using other BMS depending on the application.

RB: You’ve brought Chinese equipment and technology to the U.S. to make batteries here. Does this mark the beginning of a trend of “onshoring” with regard to technology jobs?

AA: I refrain from making any general comment regarding possible trends of “onshoring,” but for the specific case of lithium batteries, I can comment. First, it does not make sense to advocate for more energy independence by having more EVs and PHEVs unless we can produce at least a large portion of the lithium batteries in this country. Second, if you want to [be] the best you benchmark the best. The best in lithium batteries so far are the Chinese. Consequently, we went there to learn and acquire technology. Now we strive to take it further by adding our product and process engineering.

RB: When we spoke in Allentown, you talked about the many tradeoffs that come with designing batteries, high power versus long discharge, etc. Can you explain what some of the key tradeoffs are?

AA: Designing an optimal battery system is anything but trivial. There are many variables, for example gravimetrical energy density, volumetric energy density, charge and discharge rate (power), cycle life, shelf life, temperature tolerance, reliability, safety etc. You cannot get it all in one type of battery, but lithium iron phosphate batteries show high performance simultaneously for most of the variables and thus can be the optimal solution for many applications.