PEORIA -- To hear Mil Ovan tell it, Firefly Energy Co. could help save a sector of U.S. manufacturing, if not Peoria.
Ovan, senior vice president and co-founder of the Peoria-based Firefly, spoke to the South-West Kiwanis Club on July 19. Club members got a primer on battery technology, and quizzed Ovan on the possibilities for the company, a Caterpillar, Inc. spinoff founded in 2003.
Government at various levels and private investors have bet $17 million so far that Firefly can create a better battery. The first commercial application, for diesel trucks, is due out a year from now, Ovan said.
Lead acid batteries now used in vehicles and for other applications have been modified only slightly since 1859, he said. "The last improvement" eliminating the requirement for adding water, was developed in the 1970s.
The batteries used in cell phones, computers and hybrid autos use different technologies that are very expensive, and they depend on costly materials, such as nickel at $45,000 per ton or lithium at $70,000 per ton. Costs are up dramatically because of demand by the Chinese economy, he said. And they're all manufactured in China.
Even lead has risen from $500 per ton in 2003 to $4,000 per ton, he said.
Lead acid batteries are still manufactured in the U.S., he said. Firefly's innovation applies carbon differently to the chemistry of the battery. It uses less lead, and is lighter, longer lasting, more powerful, and able to function at extreme temperatures. The Army is salivating.
"We're making a battery to replace lead acid batteries in tanks," he said.
"We're not declaring victory yet because we have not provided them with batteries, but that (contract) gives us a leg up," he said of the company's development of a prototype for the Army.
The commercial applications are endless, he said. Lawnmowers and lawn tractors whose batteries typically fail during storage, snow mobiles and plows whose batteries suffer from the cold, boats, submarines, golf carts, even airplanes.
The plan is to license the technology to current manufacturers, so lead acid batteries can be adapted to this superior technology, he said.
An initial public offering of stock in Firefly might take place in a couple of years, he said. He warned against focusing too much on profits from stock. "You have to make a good product and company, and the IPO will follow."
If a plant is built, it likely will be constructed in Peoria. "The key ingredient will be made in Peoria then shipped (by truck) to contract battery manufacturers," he said.
"Firefly Energy will be a world wide company (but) we want to work in the U.S." He said the company is trying to "not outrun its headlights."
It's moving to a new building on Galena Road, the site of the former Foster Gallagher Co., and has 42 employees. It expects to add 35 more employees in the next two years, he said. "These are great paying jobs."
The science problems have been solved to create the battery components, he said. The next challenge is efficient manufacturing processes
Ovan's colleague at Firefly, Dave Smith, said the company is also working on "the next generation of technology," and wants to follow the Intel model of development and marketing, "to be a step ahead of the market."
The lead acid battery market, now an $18 billion industry, is expected to double in the next five to 10 years, Ovan said.
Wow.
--Elaine Hopkins