Hoverboards were supposed to be the latest technological
innovation to take the world by storm. With the Christmas shopping season fast
approaching and stores struggling to keep the self-balancing motor scooters on
the shelves, it appeared that these futuristic transportation devices were set
to claim their spot amongst the most popular gift requests in recent memory.
Then, disaster struck. Multiple cases of house fires resulting from faulty
lithium ion batteries and substandard charging units hit the news, and,
suddenly, the year’s most popular gift idea became the subject of a federal
investigation.
“We consider this a priority investigation,” Patty Davis, a
spokesperson for the U.S. Consumer Product Safety Commission, told CNNMoney.
“This is a popular holiday item and it’s going to be in a lot of consumers’
homes, and we’d like to quickly get to the bottom of why some hoverboards catch
fire.”
In the weeks since the initial report, additional hoverboard
accidents have made headlines around the world. Within the past week, multiple
fires in areas such as Melbourne, Australia, and California have been
attributed to the futuristic scooters. In the case of the Australia fire, the
hoverboard was left to charge for just 10 minutes, according to the family, before
combusting into an inferno that caused more than $500,000 in damage. The
response to these malfunctions has been swift and decisive. In the U.K., for
example, hoverboards have been outlawed, and many other countries are looking
to follow suit. In the U.S., California has enacted new rules governing the use
of the two-wheeled devices on roads, and a number of airlines have banned them
outright.
The charge against potentially deadly design flaws in many
hoverboard models hasn’t been restricted to legislators. After the initiation
of a federal probe into at least 16 reports of hoverboard fires in 12 states
across the country, retail giants Amazon (NASDAQ: AMZN) and Target (NYSE: TGT)
halted the sale of nearly all hoverboards until manufacturers were able to
provide proof that their gadgets were in compliance with applicable safety
standards. As of this week, self-balancing scooters from popular manufacturers
such as IO Hawk, PhunkeeDuck and others were still unavailable on Amazon.
So with all of this in mind, consumers around the globe are
wondering why hoverboards are so prone to combustion. While the U.S. Consumer
Product Safety Commission is continuing to work to find out the specific root
of the problem, experts in the field of electronics point toward the scooters’
lithium ion battery packs. Much like the batteries used in laptops, tablets and
cell phones, hoverboard batteries feature compartments loaded with a highly
flammable liquid that can, if damaged or manufactured incorrectly, lead to
excessive heat and explosion. In many cases, all it takes for a catastrophic
failure is a small puncture in the thin sheet of plastic dividing the positive
and negative sides of the battery. For that reason, proper quality control is
vital to the safe manufacture of lithium ion-based stored energy solutions.
The potential dangers of faulty lithium ion batteries aren’t
a recent revelation. In 2006, for example, computing giant Dell recalled
millions of laptops as a result of just six incidents of fire. In a more recent
event, Boeing (NYSE: BA) was forced to ground its 787 Dreamliner airplane until
it could find a way to adequately cool its lithium ion power sources. The
common denominator in almost all of these issues has been manufacturing issues
stemming from a lack of adequate quality control.
In the case of hoverboards, it can be difficult if not
impossible for consumers to inspect their batteries. The result has been that
many of the faulty gadgets have been powered by counterfeit batteries sporting
the logos of trusted manufacturers such as Samsung (OTC: SSNLF). By skimping on
quality, manufacturers are putting an emerging new market in danger of
disappearing just as it begins to hit a mainstream audience. The solution to
this problem, however, may be simpler than it appears.
Oakridge Global Energy Solutions, Inc. (OTCQB: OGES) is
actively combatting the problem of dangerous counterfeit batteries from
overseas factories by producing high quality, ‘Made in the USA’ products that
are optimized to address high-demand target markets. While manufacturers who
turn to the lowest bidder for their energy storage solutions keep getting
burned by inferior quality batteries, Oakridge is leveraging an immense
intellectual property portfolio and an extensive history of design and system
innovation to deliver the latest in energy storage technology.
With Chinese-made batteries repeatedly landing in the
headlines for their questionable quality and origin, Oakridge’s battery
systems, which are designed and produced in the company’s new manufacturing
facilities in Melbourne, Florida, offer clients a better approach to stored
energy and a level of quality and consistency upon which they can construct a
more marketable and sustainable product and brand.
As the nightmare surrounding the hoverboard phenomenon
continues to grow, the vital importance of high quality energy solutions is
once again in the spotlight. Look for manufacturers to begin shifting away from
the uncertainty of imported energy solutions in favor of the quality and dependability
associated with a ‘Made in the USA’ product. With its recently completed
restructuring and commencement of full-scale production operations, Oakridge is
in a favorable position to capitalize on this market shift by offering a range
of groundbreaking energy storage solutions.
For more information, visit www.oakridgeglobalenergy.com
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
