Lithium-ion plane fires may actually benefit the US

The danger surrounding the shipment of lithium-ion batteries is causing many to rethink the lithium-ion craze that has blossomed with hybrid cars, cell phones and laptops. When first introduced, lithium-ion batteries returned impressive specs that challenged the conventional battery and opened a window of opportunity for a better, longer lasting battery. But was the winning battery chosen too soon?

In early August, the Energy Department made a major push for US companies to get involved with lithium-ion battery production. To do so, over $2.4 billion of federally funded grants were awarded to build manufacturing plants for batteries. Most of the money was set aside for car manufacturers and battery and component suppliers in the Midwest region (predominately Michigan and Indiana).

The Energy Department hoped to accelerate growth in the US auto industry and maintain Obama's goal of getting 1 million plug-in vehicles on the road by 2015.

At first glance, the proposal looked good: create jobs in America and catch up with foreign battery suppliers that controlled much of the lithium-ion market share.

Recent shipping scares, however, are making many cautious of the lithium-ion battery.

Since June, the Air Line Pilots Association reported three incidents of lithium batteries causing fires and smoke in planes. The lithium cargo created quite a scare for passengers and the pilots on board and are now in danger of a facing a federal ban.

Many of the pilots in the union supporting the ban believe the risk is too high. Mark Rogers of the union said, "We need an immediate ban on these dangerous goods to protect airline passengers, crews and cargo."

Most of the fires are caused by a short circuit in the lithium-ion batteries that are being shipped in high quantities. At this point, there is not a fear of individual batteries in cell phones and laptops creating the same type of problem, but the safety administration will continue to "watch the situation very closely."

What's intriguing about the situation is that the grant money the US invested is going directly to US manufacturers that may not have a need to ever get airborne. The same may not be true of imports and exports, and with the way foreign countries have controlled this market, the US may finally be catching a break.

By no means will this completely cut off supply, but it may level the playing field a bit with foreign battery suppliers.