(Crain's) -- No one wants to see the price of gasoline climb to $5 a gallon, but one Chicago startup could get a lift from more people trading in cars for electric scooters or motorcycles.
AllCell Technologies LLC, a small firm that patented technology to prevent ion-lithium batteries from overheating and catching on fire, has been creating jobs and ramping up production over the last year in its recently expanded assembly plant in the city's Back of the Yards neighborhood.
Said Al-Hallaj, a co-founder and CEO, developed a material solution that evenly distributes heat produced by ion-lithium batteries.
The Jordanian-born Mr. Al-Hallaj designed this product while working on his doctorate at the Illinois Institute of Technology in the 1990s on safety and thermal management solutions for this specific type of battery. He co-founded AllCell with his IIT adviser after he was awarded patents for his technology in 2001 and licensed it back from the school.
Last year, they began selling their material solution to companies that make battery packs for electric bikes and scooters. AllCell also signed a deal to work on battery packs with two Purdue University engineering students who are developing an electric motorcycle. That battery-powered bike is expected to reach a maximum speed of 120 mph and a range of 120 miles before it needs recharging.
In the last year, AllCell doubled its assembly plant workforce to 22 as part of a $1 million expansion project and training program. The firm received a $460,000 grant in 2011 from the Illinois Department of Commerce and Economic Opportunity that was part of the federal stimulus plan. AllCell is also buying cells from others and manufacturing its own battery packs, which are being sold in the U.S. and in Europe and Asia. Last year sales totaled less than $1 million and the company isn't profitable yet.
Crain's contributor Judith Nemes met with Mr. Al-Hallaj recently to learn more about AllCell and its growth plans. Read their complete Q&A on Crain's blog for Chicago entrepreneurs.
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For more news for Chicago entrepreneurs, follow Crain's small-business editor Ann Dwyer on Twitter: @AnnDwyer_Crains.
