Israel Boosts Agassi's Electric Car Concept
Congratulations to Shai Agassi for recognizing that successful development of electric cars requires technical and business solutions. I first came across Agassi three years ago when he was a rising star at SAP, the giant software company. Now he’s heading an entrepreneurial effort based in California to promote use of electric cars. His idea is to market electric cars the way cell phones are marketed. The hardware itself (in this case the car) is subsidized. Users have a contract and pay monthly fees based on projected usage. New batteries developed by Agassi’s company, called Project Better Place, provide lithium-ion batteries that can go 124 miles per charge.
“Project Better Place solution framework looks to convert an entire country into electric cars, powered by batteries, that get their energy from green sustainable electricity sources, through a smart electric recharge grid that covers the entire country,” says Agassi in his blog. Israel, where gasoline costs more than $6 a gallon, is now putting some muscle behind the idea. Israeli users of the electric car will receive tax incentives. Plus Israel is investing $200 million to build recharging facilities, also supplied by Agassi’s company. Drivers don’t have to wait for a recharge. Batteries are swapped out. Call it “a battery fill up”. The other partner in the collaboration is Renault-Nissan , which will provide the cars. For the moment, no huge re-engineering of the cars (a la Chevy Volt) is planned. Processors for the cars electric components are still under development. Separately, Renault and Nissan expect to manufacture a hybrid by 2010 and an all-electric car by 2012.
The money behind Agassi’s company comes from Israeli businessman Idan Ofer, who hopes to expand the concept to New York, Singapore, China, and London, where electric cars get special treatment on downtown streets (such as free parking). A pilot will start later this year in Tel Aviv. A few hundred cars are expected to be on the road next year
This strategy is an interesting contrast to the approach taken by GM in the last dozen years, which has been well chronicled by my outstanding colleague, Chuck Murray. GM has consistently gone for the technical home run, staring with the EV, and continuing today with the Chevy Volt, which includes breakthrough ideas in materials technology. Meanwhile, Toyota got the lead with a less ambitious idea, the hybrid Prius. And now comes Agassi’s very exciting concept.
Daniel commented:
Hail, this is only way we can save the World. in danger of pulution and terrorism
jack marchand commented:
Feb 7th, 2008 Gentlemen, There were concerns that exxon was buying up all lithium-ion battery patents in order to control this new possible infrastructure. They would be wasting their time. Hundreds of patents existed with even many now expired and very likely owners of valid ones now would want to proceed themselves with developing their own systems and cashing on it themselves....its in the $ billions. Check my comments of feb.5th 2008 at the bottom of this following Exxon VOLT page..but before...reassemble it h tt p: / /w ww . gm-volt.com/2007/11 /29/exxo nmobil-helping-to-make-lith ium-ion-batteries/#comments_ -------- Existing and expired patents on "battery swap stations" are also shown in my old 'angelfire' web site. Check this....reassemble also ht t p ://www. angelfire .c om/nj4/str eetrag/ inde x3.h t ml With this new venture there should be enough possibilities to help all countries and more unfortunate people of this world to move into a happier life. There's no more room for the Greedy and the Selfish. All the best Jack Marchand
B Hodges commented:
It is time to change. dependency on oil is in fact the dinosaur that produced it. Electricity is cleaner and there are various ways of producing it. Yes, the cost may seem high at first but to just sit back and wait for the reserves to run out is not the smart thing. If used for transport to and from work could save users a considerable amount of money. This of course may spawn the idea of charging a premium for its use. This would be a bad thing for both the economy and the environment. Time to get our act together.
Teton Sands commented:
Gasoline has not been competive with electric for the past decade if the true cost of oil were reflected in the pump prices of gasoline. Military cost to maintain oil flow (one of many subsidies) exceeds $200 billion ($50 per imported barrel)
Narendra Rao Hiriyanaiah commented:
The Electric car is a reality one has to accept and embrace the same as it is a matter of time before the oil reserve runs out. Whatever initiative the governments take the result will be valued at end of a certain period. The World is trying out every means to come to grip with its development process and engery is the only thing that can stop the progress. Battery technology will improve as developments take place hence I will just state that in India we have our electric car running without the kind of subsidy that one is talking about and the numbers are increasing and the government is not giving that kind of subsidy to make a success of the project nevertheless the number of users is certainly going up as the cars are being produced.
Steve commented:
Al needs to check his math.
STEPHEN commented:
Whether the Israeli tax authority is doing social engineering or not is not the point. Agassi's idea has merit for the short distance user. And 100km per charge is sufficient range for the vast majority of home-to-work commuters.
Reality commented:
Unfortunately, Now is the time to start doing something before the oil is gone. Even though it is a high cost for them they won't be dependent on people who want them dead. What if "proven" reserves are over stated and several major providers reach the end of there supplies? If modern technology doesn't come up with a better solution we may all be idiots driving electric cars for short distances.
Al Rothman commented:
Unfortunately, the time for battery powered cars has not yet come. The hybrid car halves the fuel requirements for automobile transportation. And even for an electric, when battery technology makes that feasible, needs some way of generating the power to recharge the battery. With current technology, only an idiot would buy a short-range, battery powered electric car. The Agassi car is predicted to have a range on only 100km. Average drivers do more than 10k kilometers per year, and would therefore have to exchange batteries THREE times a day! And that is if you don't operate the air conditioner, which uses as much power as the car itself. Somehow, Agassi will make a fortune on his idea, but everyone else will lose.
Al Rothman commented:
Agassi's electric car plan is a scam. It is no coincidence that his target market is Israel, since automobiles in Israel are taxed at a rate that STARTS at one hundred percent. The Agassi electric will be taxed at only ten percent. It's cost in Israel will be $27k. In any normal country you could buy a hybrid for that price, without the need for a battery exchange station infrastructure. But a hybrid in Israel costs $43k. It is only the tax advantage that the Israeli government has bestowed on Agassi's vehicle that makes it saleable at all.
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