American Lithium Energy Expanding Production Capabilities

CARLSBAD – For American Lithium Energy Corporation, years of waiting finally may be about to pay off.

The Carlsbad-based company was formed in 2006, and for its first 16 years it focused on research and development and on engineering.  

Two years ago, CEO and founder Jiang Fan moved to finally commercialize their technology and began production of thousands of lithium battery cells at their headquarters, and it is preparing for an even larger jump.

The company has more than 100 patents and makes the world’s highest energy density silicon-based lithium-ion batteries with zero-volt technology, meaning the batteries can power down to zero without damage.

Clients include Raytheon, Lockheed Martin, Northrop Grumman, Boeing, NASA, Jet Propulsion Laboratory and U.S. Space Force, but Fan sees an even bigger market ahead.

ALE recently secured $20 million in Series A funding, led by Sage Energy Holdings of Delaware, to expand its manufacturing facility.

The funding adds to $10.2 million it received last year from the Zero-Emissions Transportation Manufacturing program and $3 million from the CEC Realizing Accelerated Manufacturing and Production program.

 Last year’s funding allowed the company to increase production from tens of thousands of batteries to a target of 1.5 million cells annually. The $20 million will go toward a 70,000-square-foot building, with a groundbreaking expected by the end of the year, to increase production up to 5 million cells annually.

The increased production will allow the company to finally fulfill a request from the U.S. Army, which provided ALE with $160,000 in its earliest days.

The Army’s Interest

Fan was working for GP Battery Technologies in San Diego in 2005 when the U.S. Army contracted with the company to develop a high-energy cell.

GP Batteries at that time decided to relocate to China, and Fan stayed behind and worked out a deal with the company CEO to get the equipment. He then reconnected with the Army.

“I said, ‘You guys like our work, and now we have the equipment, can you fund us?’” Fan said. “And they said ‘yes.’”

The Army was interested in using the technology for conformable wearable batteries, which are flat and flexible devices that fit into a soldier’s tactical vest and body armor.

Fan formed ALE to further develop the technology, which could have broad uses beyond the U.S. Army and can be used for other military branches, satellites, spacecraft, unmanned aerial vehicles, energy storage and healthcare.

ALE produces 18650 cells cylindrical lithium-ion batteries, which measure 18mm in diameter and 65mm in length. Unique to ALE, the company’s batteries are rated at 4.2 amp hours, a higher capacity than any other batteries that size. Other 18650 cells are typically rated at 3 or 3.2 amp hours.

William Hadala, ALE vice president of strategy, said the batteries also stand out for two other factors.

The batteries have a patented zero-volt technology, which allows them to go to a zero percent charge without causing internal damage, and it is negative thermal coefficient, meaning its material shrinks rather than expands when heated.

Both those qualities create a battery that is more stable and less likely to catch fire, Hadala said.

“You remember that big San Diego fire that was out there burning for two weeks at an energy storage farm?” Hadala said. “All of that most likely could have been prevented if zero volt and our negative thermal coefficient technology had it been in use.”

Safer, Efficient

The company’s cells can withstand high temperatures as well as temperatures as low as minus 50 Celsius, an important factor in defense and aerospace.

The ability to have the battery charge drop to zero without causing internal damage is another safety factor, including making them more stable when being transported.

Fan noted that several cargo ships transporting batteries have caught fire at sea, costing one company a $1 billion loss.

“The zero volts can solve this issue because if you can discharge the battery to zero energy and then ship it,” he said. “Because the battery contains no energy, it can be shipped safely without any issue by air or by boat.”

With the added capacity, ALE plans to start hiring as production ramps up, Fan said.

American Lithium Energy Corp.
FOUNDED: 2006
CEO: Jiang Fan
HEADQUARTERS: Carlsbad
BUSINESS: Lithium battery production
FUNDING: $20M Series Area, $13.2M California Energy Commission grant
WEBSITE: www.americanlithiumenergy.com
NOTABLE: The company holds a patent on technology that allows batteries to go to zero volts without damage, making them stable and safe from fire.