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"If there is so much interest and clamor for green energy, which use these batteries for storage and power, then why do these companies have so much trouble staying afloat?"
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Answers to such questions are available if one wishes to do a little research. Publications for both the battery industry and the automotive industry indicate that the Chinese government is undercutting the market by dumping cells and batteries. When competitors are driven out of business, they buy their assets (and customers). The Chinese are taking the long view, trying to corner the market, and stepping on the neck of competitors whenever possible. They have obviously learned how to play the Game of Capitalism very quickly. (
You win or you die.)
The Chinese have already done this to the rare earths market. Rare earths are indeed rare, but there are sources outside of China. However, the Chinese government considers this rare earths a strategic weapon, and they financially support and control the industry. They also limit the sales of some of these raw materials (in this case, lithium). They can make it almost impossible for competitors to be successful.
As Bob Kerns says, this is a very dynamic business, with new technologies and enhancements to older technologies occurring quickly. An analogy might be Nokia and the smart phone market. A few short years ago, RIM Blackberry was on top. Now, ...um... they are
not. Obviously, this doesn't mean there isn't a market or that people are being told to buy something else. Rather, it means that a technology and design boat sailed at some point, and RIM missed it.
Valence is on the ropes for a number of reason, not the least of which is that most of the big customers decided to buy batteries from other companies.
Rule of Acquisition #147: Without sales, technology is worthless.