Delaware County has many old industrial parks that were once part of the area’s tradition of manufacturing. When visiting some of these sights, one might often find the current tenants using the space as fabrication shops, auto repair sheds, or in many cases for the storage of materials.

Though some of these businesses are successful, their purpose is not necessarily unique or memorable. On the contrary, Lithchem Energy, located in the Folcroft Industrial Park, has a mission that is far from ordinary.

Lithchem is a budding energy company that is using some of this old industrial space to conduct scientific research. The subject of this research is aimed at the development and automated production of high tech batteries and cathode materials designed for the nation’s ballistic missile defense shield. The company is also in the process of developing ultra capacitor electrode materials, electrolytes, and capacitor electrolyte salts. Lithchem currently maintains 29 active patents for product concepts that they are developing in Folcroft.

After reading this company’s cutting edge product description, one might assume that Lithchem’s facility would resemble a NASA laboratory.  Nothing could be further from the truth. Dr. Novis Smith, Lithchem’s Vice President of Technology explained that his company is operating mostly on revenue supplied from SBIR (Small Business Innovative Research) grants. Dr. Smith described the process for obtaining SBIR grants as tedious and difficult. He suggested there was a 1 in 10 chance that a SBIR proposal was awarded.  He did however suggest the odds were better for a firm that has historical success with scientific research.  The grants are issued by Federal agencies, such as the Department of Defense, and the Department of Energy, to fund R&D projects that enhance national interests. Lithchem has not yet gone “commercial” with any of their key products but is focused on this.

Lithchem was awarded a $2.5 million Phase III SBIR grant last spring to aide in the production of their lithium batteries.  During a visit to their facility on November 13th, 2008, Dr. Smith indicated the firm was still waiting for the funds.  The grant is intended to enable Lithchem to meet the requirements for lithium battery production for the MKV (Multiple Kill Vehicle) project. The MKV is a high tech weapon which launches a cluster of independent rockets designed to intercept a ballistic missile. Lithchem’s lithium battery has been selected to replace the current thermal reserve batteries that power the MKV.  Dr. Smith explained that Lithchem’s product can be monitored and tested to insure it is working properly prior to launch.  This feature is a significant upgrade over the thermal reserve battery which has proved problematic for the military. Additionally, Lithchem’s lithium battery has extraordinary power storage capability and life expectancy.

The Folcroft site currently consists of a small laboratory and some additional office space.  Dr. Smith explained that the company’s expansion to commercial applications will begin when the MKV funding is received. Production will take place in an adjacent section of their building which was under construction. He also indicated the firm plans to hire 25 people to work on the commercial production of their products over the next year or so.

Lithchem’s current staff consists of five men who have functional roles within the company.  Novis explained that the company has no secretary or receptionist. Limited cash flow requires an operating plan that includes only the absolute necessities.  As a result, Novis and his associates handle all of the basic tasks the company encounters in addition to their scientific R&D roles.

Dr. Novis Smith commented that a start up business such as Lithchem is similar to a tree.  The implication is that a tree grows in a straight line initially and then branches off in many directions. Similarly, Lithchem’s business plan has been changed to enable the firm to overcome obstacles. Dr. Smith indicated the company has been restarted several times following the loss of funding relative to problems with some of its initial projects. In his view of the company, he described that it simply grew a new branch which traveled in a different direction.

At this point in time, Lithchem intends to exclusively market their product to defense contractors.  Dr. Smith indicated their capacitors and batteries have many other long term practical applications.  Some of these applications are: cell phone, MP3 player, lap top computer, and small electronics batteries. The capacitors could be used for hybrid vehicles and industrial energy efficiency applications. Dr. Smith implied that other products currently in development will further distinguish them in the future.