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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