In order to build a plant to make advanced batteries for electric cars, 14 U.S. technology companies are joining forces and seeking $1 billion in federal aid. This alliance, which includes battery industry giants such as 3M Co and Johnson Controls-Saft, intends to secure $1 billion to $2 billion in U.S. government funding over the next five years so that they can build a manufacturing facility with an "open foundry" for the participants to pursue the goal of perfecting lithium-ion batteries for cars.

The group will be calling itself the National Alliance for Advanced Transportation Battery Cell Manufacture aims to create one or more manufacturing and prototype development centers in the United States. Alliance members will share those centers, the statement said.

Many experts believe battery technology and manufacturing capacity could become as strategically important as oil is today. Auto makers, including General Motors Corp. and Ford Motor Co., say they plan to roll out plug-in electric cars by 2010. However batteries are the most expensive component in plug-in electric vehicles, a market being pursued by a few U.S. companies. But battery makers and analysts say that U.S. manufacturers lack the financial means necessary to meet the anticipated demand of electric cars.

Ralph Brodd, a Nevada-based energy-storage consultant, told the Wall Street Journal that American companies had basically "opted out" of the battery business due to low returns. Brodd explained that local corporations faced significant difficulties in resuming profitable production, such as the preference Asian car makers display towards locally manufactured batteries for popular hybrid models.