NEW YORK, NY--(Marketwire - 07/16/10) - Mammoth Energy Group Inc. (Pinksheets:MMTE - News) announced today that President Obama's trip Thursday to another battery plant in Holland, Michigan, was his fourth automotive battery-focused stop since being elected President. To riff off of President Clinton's mantra, "It's the economy, stupid," it's almost as if Mr. Obama's catch phrase about what's important could be, "It's the battery, bozo."
The reason is that batteries are central to the president's election-year message that green-tech will lead America into well-paid jobs and a revived economy. But politics aside, the $2.4 billion the Obama administration has funneled to the advanced battery industry points to a tooth-and-nail struggle as the United States endeavors to catch up to Asia in making cutting-edge lithium-ion batteries for use in vehicles.
"Having a world leader like President Obama visit the actual manufacturing plants that lithium and the lithium-ion will create over the next five to ten years shows how powerful the paradigm shift is changing towards lithium and alternative fuel sources," declared William Lieberman, President of Mammoth Energy Group.
"The workers at this plant, already slated to produce batteries for the new Chevy Volt, learned the other day that they're also going to be supplying batteries for the new electric Ford Focus as soon as this operation gears up," Obama said Thursday at the Compact Power plant in Michigan. "By 2012, the batteries will be manufactured here in Holland, Michigan. So when you buy one of these vehicles, the battery could be stamped 'Made in America' -- just like the car." Last week, he visited an electric-truck plant in Kansas City, Mo.
Developing US manufacturing prowess in new batteries is vital, analysts agree. Those batteries will power next-generation electrified plug-in vehicles, which are expected to dominate auto sales within a decade, they say. The nation that dominates batteries is also likely to take the lead in overall auto manufacturing.
"The Obama administration is making a concerted effort to prevent the failure of the US auto industry, and that will bolster development of the US battery industry through 2012," says John Gartner, a senior analyst at Pike Research, a Boulder, Colo., clean-tech research company. "But political shifts and market realities could remove that safety net."
Nine battery plants in the works
The huge federal investment has single-handedly vaulted the US toward becoming the globe's major supplier of advanced batteries for plug-in vehicles. Government funds have helped to finance 26 of 30 electric-vehicle battery and component plants now under construction -- including nine lithium-ion battery manufacturing plants. Four of the nine are expected to be producing batteries by year's end.
By 2012, those 30 factories will have enough capacity to supply 20 percent of the world's advanced vehicle batteries, according to a new report by the US Department of Energy. That share could rise to 40 percent by 2015.
"There's no question this federal investment has given US battery manufacturers a huge push in the right direction," says Vishal Sapru, industry manager for energy and power systems for Frost & Sullivan, a market research firm. "The funding has contributed significantly to giving the US at least a chance to play in this arena."
But he and others note that the US industry will need additional research and development funding to develop technologies that are more advanced than lithium ion, if the US is to become solidly planted as a global leader in electrified vehicles.
Mammoth Energy Group has signed a Memorandum of Understanding with Salt Gold Inter Chile Limitada, whose lithium concessions are located in the North West region of Chile in the heart of the Lithium belt stretching across Bolivia, Chile and Argentina. Initial test wells have confirmed average brine concentrations with grades of 650 ppm (parts per million) for lithium and 9500 ppm for potassium. These results confirm a significant third dimension to surface brines sampled on the project. The brine chemistry in the first test wells compares favorably to other Lithium companies in the region including the large multi-national Lithium producers whose estimates in the Atacama and throughout the region average 500 to 750 ppm Lithium and 9000-10000 ppm for potassium.
About Mammoth Energy Group Inc. (Pinksheets:MMTE - News) www.mammothenergygroup.com
Mammoth Energy Group Inc. is focused on acquiring, developing and operating strategic mining energy reserves in locations throughout the world. With an ever changing shift to alternative energy and fuels, Mammoth Energy Group will be prepared to be a leading energy supplier and operator. Mammoth Energy's goal is to become an important partner as the world's energy paradigm begins to change throughout the next decade and beyond.
Forward-Looking Statements
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and such Forward-Looking Statements are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to the viability of the company's business plans, the effect of acquisitions on our profitability, the effectiveness, profitability, and the marketability of the Company's products; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; and other risks detailed in the Company's filings with the Securities and Exchange Commission.
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