The driver for this technological development is of course oil. Although demand in the US and Europe is relatively flat, China is set to double the number of cars on the road in the next few years and in the short to medium term, this will push the price of oil up further and further, as supply remains flat.
Mr Chu expectes the price of batteries for electric cars to fall by 50% within the next two to three years, whilst he forecasts that the energy density of batteries will double or triple within six years. Investments in battery research through the American Recovery and Reinvestment Act will help build 30 new U.S. battery manufacturing plants, aiding energy security as well as job creation in the US.
Meanwhile, as the race to create jobs via the electron economy heats up, I hear that the US may not adopt the Chademo fast charging protocol from Japan, in what looks like a bit of protectionism in order to give GM, Chrysler and Ford an advantage against the Japanese who are first to market with the Nissan Leaf and the Mitsubishi imiev. Over in China meanwhile, the New Energy Vehicle Development Plan mandates that subsidies are only available for EVs manufactured in China and where a Chinese company owns the intellectual property rights - which effectively excludes GM's Volt. Hmm.
