Should Government and Industry Work Together to Develop Technology: A Case Study of the United States Advanced Battery Consortium (USABC)

The United States Advanced Battery Consortium (USABC) is a partnership between American automakers, utility companies, and the Department of Energy to develop advanced batteries to improve the market potential of electric vehicles. The USABC is a response to state mandates requiring auto manufacturers to build electric vehicles. The USABC awards contracts to battery developers and national labs to develop battery technologies. The first phase of the USABC is almost complete, but the resulting batteries have not achieved cost goals. Government involvement has helped the program progress, but a great deal of taxpayer money has been spent in the process.