Reply #55: GM did. But guess who owns that battery technology patent, now?

[krkaufman]

Chevron. As in Condi Rice's big oil sugar daddy.

"In 1994, General Motors acquired a controlling interest in Ovonics's battery development and manufacturing, including patents controlling the manufacturing of large nickel metal hydride (NiMH) batteries. In 2001, Texaco purchased GM's share in GM Ovonics. A few months later, Chevron acquired Texaco. In 2003, Texaco Ovonics Battery Systems was restructured into Cobasys, a 50/50 joint venture between Chevron and Energy Conversion Devices (ECD) Ovonics. Chevron's influence over Cobasys extends beyond a strict 50/50 joint venture. Chevron holds a 19.99% interest in ECD Ovonics. Chevron also maintains veto power over any sale or licensing of NiMH technology. In addition, Chevron maintains the right to seize all of Cobasys' intellectual property rights in the event that ECD Ovonics does not fulfill its contractual obligations."

http://en.wikipedia.org/wiki/Nickel-metal_hydride_battery#Patent_encumbrance_of_NiMH_batteries

edit: p.s. Note that the Chevron subsidiary OEMing the NiMH batteries may be in trouble...

General Motors has apparently placed Cobasys on their list of distressed suppliers, ... Cobasys is the battery company jointly owned by Energy Conversion Devices and Chevron Technology Ventures. Cobasys supplies the nickel metal hydride batteries used in GM's mild hybrid system in the Saturn Aura and Vue and the Chevy Malibu. They are also one of two supplier teams with development contracts to provide lithium ion battery packs for the PHEV Saturn Vue that was shown at the Detroit Auto Show. Cobasys is doing the pack integration for cells provided by A123 systems for that program.

Apparently Cobasys lost $76 million in 2007 and expects the amount to widen to $82 million this year. ECD and Chevron are apparently at odds about funding the battery supplier and coming up with a spending plan for this year. When GM declares a supplier distressed they start watching them much more closely and the chances of a supplier on that list winning new business are slim. GM's full-size hybrid trucks, such as the Tahoe/Yukon, utilize batteries produced by Panasonic while the plug-in lithium battery programs all use multiple suppliers, so they should be ok unless another supplier stumbles. GM has not announced the name of the supplier for the Vue Two-mode hybrid that is due to launch this fall.

http://www.autobloggreen.com/2008/02/27/gm-battery-supplier-cobasys-in-bad-financial-shape