STAG, IDB Evaluate Working With U.S. to Build Li-ion Battery Ind.

Taipei, June 17, 2009 (CENS)--To further build the lithium-ion battery industry in Taiwan, the Science and Technology Advisory Group (STAG) of the Taiwan Cabinet and Industrial Development Bureau (IDB) under the Ministry of Economic Affairs are trying to set up ties with the United States.

Industry sources said that the newly elected U.S. President Barack Obama has been aggressively promoting the development of electric vehicles in his country, and many American high-tech companies have been poaching professionals from Taiwan, leading to a manpower shortage in the local electric vehicle and battery sectors.

To effectively develop its energy industry, the U.S. government has decided to pour US$2.4 billion to build the nation into a major lithium-ion battery production nation. The big project has interested many big international companies, including lithium-ion battery maker A123Systems

Some local lithium-ion battery manufacturers told STAG that American companies have begun poaching professionals from the local battery industry and such moves might compromise the future development of the line on the island.

The STAG and IDB, as a result, held the first meeting to discuss the possibility to work with the American battery industry rather than compete with it.

Currently, lithium-ion batteries are used mainly in PCs and cellphones, and Taiwanese makers together supply about 3% to 5% of the global demand.

With sound infrastructure in high-power and -safety li-ion battery line as well as materials, the partnership between the battery industry in Taiwan and the U.S. is expected to achieve a win-win scenario.

Taiwanese Makers of Lithium-ion Battery
Product
Cathode Material	Changes Ascending Enterprise Co., Ltd., Hirose Tech Co., Ltd., Tak Technology Co., Ltd.	Change Ascending is scheduled to kick off mass production in September, and is going to raise NT$3 billion (US$ (US$92.3 million at US$1: NT$32.5) to set up a new LiFePO4 li-ion battery cell plant with local Coretronic Corp.
Battery Cell	Amita Technologies Inc. Ltd., EXA Energy Ltd., E-One Moli Energy Corp., Phoenix Silicon International Corp.	EXA Energy poured NT$4 billion (US$123.1 million) to set up the largest production plant of high-power li-ion battery cells in Taiwan.
Battery Pack	Delta Electronics, Inc., TD HiTech Energy Inc., Simplo Co., Ltd.	The companies directly cooperate with vehicle makers in the li-ion business.
Whole Battery and Vehicles	Pihsiang Energy Technology Co., Ltd. (PHET)	In-house production of upstream materials, cells, packs as well as e-bikes, e-scooters, and electric mini cars.
Source: IDB.