INNOVAT ION

Global Power

Israel wants to energize Michigan's hybrid and electric batteries.

Karin Kloosterman
www.israel 21c.org

Rosh HaAyin, Israel

A

utomotive companies in
Michigan are looking to Israeli
battery and electric car innova-
tors, like Better Place, to help revive their
ailing car industry
With a little help from Israel, Michigan,
the automotive state, may receive just
the jolt it needs to get its industry rolling
again.
In some ways, the automotive heart of
America has been working steadily with
Israel for decades.
Government incentives are now work-
ing to transform America's battered auto
industry into something new And Israel
could play a part.
With a little help from Israel — Michigan, the automotive state, may receive just the
Ron Perry, executive director of the Ann
jolt it needs to get its industry rolling again.
Arbor-based Michigan Israel Business
Bridge, says Israel's history as a supplier
engine, described by USA Today as "a jet
Battery Connections
to the Big Three is well developed. With
engine for a Toyota Prius."
Some $1.3 billion in federal stimulus
a new focus on electric and hybrid cars,
So far, the Michigan-Israel group has
money has been channeled into batteries
Michigan, he says, could benefit from col-
connected with Prof. Doron Aurbach from
laboration with Israeli battery researchers. to make Michigan the battery manufac-
Israel's Bar-Ilan University Department of
turing capital of the world. Dow Chemical
Before the Michigan Israel Business
Chemistry, a leader in the battery storage
is getting into batteries, Perry says,
Bridge was created about three years ago,
field, who also collaborates with key play-
asserting that it's batteries that will bring
a number of Israeli firms were supply-
ers at other Israeli schools, including Tel
Michigan and Israel together.
ing parts and solutions to the U.S. auto
Aviv University (which developed the bat-
In batteries, there is an
industry. "The history of
tery storage company Enstorage) and the
opportunity for Israeli
Michigan and Israel in
Technion-Israel Institute of Technology in
companies, says Perry,
the automotive industry
Haifa.
who is a consultant
has been one in which
on water technologies,
several kibbutz companies
Speed Dating Exercise
biotech, clean tech and
in Israel that produce auto-
The Michigan Israel Business Bridge has
security
motive supplies, and lower
developed two forums over the last couple
"We've made a call
level companies, sold to the
of years that have led to some concrete
out to Israel — to many
Big Three and new com-
business exchanges.
Israeli companies and
panies, such as automotive
One led to a partnership with Southeast
researchers in universi-
tech companies:' Perry
Michigan's Automation Alley, which con-
ties developing advanced
says. General Motors has
nected Michigan businesses — original
battery technology for
an R&D facility in Israel.
equipment manufacturers and tier 1, 2
vehicles, energy storage
As they restructure
Michigan Isra el Business
and 3 suppliers — to Israeli companies.
and energy conversion.
and build more focused
Bridge's Ron Perry
It was accomplished "speed dating
"These are all things
and leaner brands, the
style," says Perry, who is not at liberty
the state of Michigan
Big Three in Michigan are
to divulge the partnerships until the
and its universities are seeking. There are
looking to build smaller cars, as well as
companies themselves announce details.
Israeli companies that are developing the
plug-in hybrids and electric cars.
"Going forward, Michigan will always be infrastructure for electric vehicles, such as Automation Alley is based in Oakland
County.
an automotive state — people are looking Better Place and ETV, that are developing
"Customer sales were made, as were
new engines for the electric vehicle world:'
at hybrid vehicles and electrical vehicles
new customer acquisitions and a couple
says Perry.
and have put a stake in the ground worth
of strategic alliances between Michigan
For example, Israel's ETV Motors
a billion dollars of federal funding," says
and Israeli companies',' Perry says. "We
recently raised $12 million to fuel its
Perry.

are helping them to further develop their
business.
"Even though they have been selling to
Detroit, historically [Israeli companies]
have a hard time getting their foot in the
door. Many of these companies have for
years been trying to get to the right busi-
ness development people even if they have
local reps. We've helped open doors for
some companies who weren't able to open
them before."

A Jumpstart
Some of Israel's automotive technology
comes from the military and telecom
industries and includes Raval, a company
based in the Negev Desert near Sde Boker.
Raval supplies fuel tank systems for cars
to prevent fuel reflux.
Another Israeli company working with
America is Mivrag from the Galilee region,
which supplies cold-formed metal parts to
tier 1 and tier 2 companies like GM, VW,
Delphi and Opel. There is also Tadir-Gan,
which provides precision-molded alumi-
num parts.
Perry mentions some Israeli companies
that have been less successful at entering
the U.S. market. MobilF.ye , which has com-
mercialized military technology to provide
warnings for safe departures on runways,
has been having difficulty transforming
its technology to the automotive industry
for fleet safety, he says.
Then there was Microheat's HotShot
technology that went up in flames. The
company developed a windshield wiper
technology to prevent wiper fluid from
freezing. A technical problem in GM cars
caused a fire and a led to a lawsuit, forc-
ing the company to file for bankruptcy in
2008.
While he concedes that,"It's no secret
that Michigan has its problems, too',' Perry
adds that, `A very large percentage of Israeli
companies make a lot of hoopla and then
fizzle out when they reach the U.S. market.
With that said, I am happy to discuss the
good and the bad, and the future?'
And that's because, according to Perry,
"Michigan is not going down easily in this
changing world. It is trying to chart a new
course:"
So with a little innovation, and perhaps
a little help from Israel, America's automo-
tive state may begin to show marked signs
of improving. ❑

February 4 • 2010

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