Axion Power

Early companies are like children, coddled, self absorbed, full of promise. Axion Power is a bit atypical in that it has been around for a few years and has been the recipient of a good amount of investment money that it has spent on research and development of its proprietary product, an asymmetrical battery with a carbon negative electrode. The essence of the technology is that the degradation from lead sulfate deposits on the negative electrode does not occur --or occurs very slowly--on the carbon electrode. As a result the battery has a better charge acceptance, a longer life, and, if used in as the element in stop-start engines, uses less hydrocarbon and produces less carbon byproducts.

Regardless of how one feels about pollution and global warming, legislative changes are in place to influence them in a profound way in the near future. Penalties start in 2012 in Europe and are progressive depending on the degree of noncompliance. Moreover, penalties apply to the entire fleet, even if only a few makes are non compliant. Penalties start in 2016 in the U.S..

Surveys of the car battery industry are interesting and surprisingly little publicized. By 2020 it is estimated that 94% of all cars made will have a two battery, stop-start system in place; only 6% will be electric.

A trip to Axion's annual investor meeting is a treat. Axion has been working out of an old battery factory in New Castle, Pennsylvania. (It would probably be impossible to get a permit to build a new facility these days.) The meeting was held at the local country club. Understandably it was a small group. Several members of the development team spoke about the science and technology but all the speakers were possessed by the quiet assurance of a card player with a strong hand. The science seemed to be enough for them; there was nothing for the business to prove. Indeed questions about their own technology seemed to fascinate them. For example, a question about degradation of their lead carbon battery over long term trials was raised and the the researcher was thrilled to talk about it. A question that worried investors to the researcher was an opportunity and a proof of concept. The degradation was in the positive electrode which never happened before because the negative electrode deteriorated so fast that the positive never had a chance to degrade. Their new technology now gave them an opportunity to see and investigate something entirely new!

This is a big market. Even a small part of the impending stop-start market would be big. The executives seemed casual about their applications there. Car companies seem to absorb good technology; good technology never penetrates them. So they plan to continue their research and development with the confidence it will prove out. They are working on a scalable battery unit with applications for wind and solar as well as business and residential use. But their real thrust is the locomotive industry where they think they will solidify their proof of concept.

A trip to their manufacturing and research facilities was illuminating. They have two production lines for lead acid batteries with several research areas where they evaluate batteries and their products. They have a second facility where a second generation robotic production line turns out their carbon electrode. (This facility was unmarked and had a "For Sale" sign in the front of it as if they were a CIA front.) While the robots ran, a section of he facility lost its power much to the ironic enjoyment of the staff.

Every young company is an under-the-radar monster to its creators. Axion is in a technological area that is an under-the-radar monster by government fiat. Whether they can fill that space is yet to be seen but while talking to a group of investors one of the technicians said, "It's nice being here. A few years ago I would go to a conference and no one would talk to me. Now everyone wants to know what we are doing."