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When a couple of brand-new laptop computers burst into flames recently at the offices of Apple Computer Corp. in California, it was good news for Troy-based Energy Conversion Devices Inc.
ECD (Nasdaq: ENER) gets virtually all its profit from Ovonic Battery Co., a subsidiary that holds the key patents for rechargeable nickel metal-hydride, or NiMH, batteries. This battery design has become the worldwide standard for use in laptops and cellular phones.
But recently, computer-makers have been toying with a new battery design called lithium-ion, which promises more power and a longer time between charges. Apple was intrigued with the possibilities of lithium-ion batteries. That's why they made such batteries standard equipment on their newest laptop, the Powerbook 5300.
But in late September, two of the Powerbooks began to burn. An inspection found that the lithium-ion batteries had caught fire. Lithium can burn when exposed to water; somehow this had happened.
Apple halted all shipments of the computers and announced that when the 5300 went back on sale, it would be equipped with Ovonic-type NiMH batteries.
Subhash Dhar, president of Ovonic Battery, isn't one to revel in the misfortunes of others, but he does say lithium-ion batteries...