Wednesday, March 14, 2012

The best technology does not always win

It is well known that A123 Systems is struggling, at least as evidenced by its stock price.  However, the factor(s) behind its difficulties are not so well known, and one could speculate about its technology, its financials, and the economics of its products.  A hint to the answer is discovered from one of a fanatical base of battery users that appreciate the technical advantages of A123 batteries.  They have superior cycle life (2000 cycles with 20% diminution of capacity), but have been replaced in DeWalt battery packs with inferior batteries. See the video for a demonstration of the superiority of A123 technology.

By process of elimination, it must be something about the economics of its products or the financials.  From the video, it is implied that its products are expensive, and that consumers may not be willing to pay more for this quality and safety.  Is it because they don't know about it?

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