Lithium ion batteries are more
widely used than ever before. To illustrate this fact, consider the recent rise
in production by Tesla Motors, Inc. (NASDAQ: TSLA), the automotive company
behind a line of luxury electric cars, electric vehicle powertrain components
and other battery products. Following the launch of its $5 billion Gigafactory
focused on improving traditional lithium ion batteries, Tesla expects to have
the ability to produce more lithium ion batteries each year than were
manufactured worldwide in 2013, according to a report from Fox Business.
This sharp increase in production
capacity will likely be met with an equally strong rise in demand. Leading
global research firm Research and Markets forecasts the industry sustaining a
compound annual growth rate of 14.4 percent in the seven year period ending
2019, leading to a global market value in excess of $33.1 billion. While major
industry players such as Tesla are making advances toward bringing the benefits
of this growth back to the United States, a large majority of
currently-available lithium ion batteries and related products are imported
from factories in China and Southeast Asia.
The dangers of substandard lithium
ion batteries are well documented. Despite the fact that roughly 30 percent of
the 5.5 billion cell phone batteries produced each year are shipped by air,
according to a report by the Insurance Journal, an increasing number of
passenger and freight airlines – including both United Airlines (NYSE: UAL) and
Delta (NYSE: DAL) – have taken steps to ban bulk shipments of lithium ion
batteries following reports that these storage solutions contributed to fires
that destroyed two Boeing (NYSE: BA) 787 cargo planes in 2014. While the exact
cause of these fires has yet to be identified, the National Transportation
Safety Board openly criticized Boeing and its battery manufacturer for the
faults.
In a 2013 article
(http://dtn.fm/mR9i1) published by Forbes, contributor Steve Denning summarized
one potential issue observed in the manufacturing process of the Boeing 787.
“Some degree of outsourcing in
other countries—i.e. offshoring—is an inevitable aspect of manufacturing a
complex product like an airplane, because some expertise exists only in foreign
countries. For example, the capacity to manufacture Lithium-ion batteries lies
outside the U.S.,” Denning stated in the article. “While there is nothing in
principle wrong with necessary offshoring, the cultural and language
differences and the physical distances involved in a lengthy supply chain
create additional risks. Mitigating them requires substantial and continuing
communications with the suppliers and on-site involvement, thereby generating
additional cost.”
This practice of offshoring
lithium ion battery manufacturing has led to additional quality and safety
concerns in recent months. During the final months of 2015, hoverboards were
established as the go-to gift for the holiday season. However, improperly
manufactured lithium ion batteries and substandard quality control transformed this
futuristic gift into a nightmare for dozens of families around the globe
(http://dtn.fm/RLEf0).
Oakridge Global Energy Solutions,
Inc. (OTCQB: OGES) is taking a proactive approach to combatting the dangers of
some internationally-produced stored energy products by commercializing a full
line of ‘Made in the USA’ lithium ion battery solutions. The company’s products
– including its Pro Series, Patriot Series, Freedom Series and Liberty Series –
are designed, manufactured and tested to strict standards directly from its
state-of-the-art manufacturing facilities in Brevard Country, Florida. In the
coming months, Oakridge expects to install more than 2.6 gigawatt-hours of
production capacity for U.S.-manufactured electrodes, cells and batteries,
creating an affordable, competitive product that gives families and businesses
an opportunity to support the local economy.
With an experienced management
team in place and a detailed company roadmap outlining plans to increase its
presence in the rapidly expanding lithium ion battery market, Oakridge is
well-positioned to usher in a new era in battery manufacturing as a leader in
the ongoing ‘on-shoring’ movement. Look for the company to continue expanding
upon its product line in the coming months in an effort to promote strong,
sustainable returns for shareholders.
For more information, visit
www.oakridgeglobalenergy.com
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