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Wednesday, February 24, 2010

Does the government have battery cars all wrong?

Major consolidation will come to the battery-powered vehicle space. Revenues will be key. Can plug-in vehicles like the Chevy Volt drive the revenues needed to succeed in the battery space?Do 25,000 Volts change the auto game?

For a long time I've been critical of the government's plug-in tax credits. They are simply too focused on large battery vehicles. While some might counter 'the bigger the battery the better', the plethora of studies demonstrating the cost-ineffectiveness of such vehicles is simply undeniable.

Inevitably, big battery plug-in hybrids, for instance, will not EVER be cost-effective using current battery technologies according to the scientific consensus. Major breakthroughs beyond manufacturing improvements will be required.

And, fortunately, the government is pumping massive amounts of money into developing some sort of battery industry in the US. Yet, again, one must ask, 'Is the government taking the right approach?'

Finish: Does the government have battery cars all wrong?

Labels: Hybrid Vehicles, lithium battery, plug-in hybrid vehicles

posted by Dahcredyns at 8:18 AM

4 Comments:

Blogger Dahcredyns said...

Full Story

For a long time I've been critical of the government's plug-in tax credits. They are simply too focused on large battery vehicles. While some might counter 'the bigger the battery the better', the plethora of studies demonstrating the cost-ineffectiveness of such vehicles is simply undeniable.

Inevitably, big battery plug-in hybrids, for instance, will not EVER be cost-effective using current battery technologies according to the scientific consensus. Major breakthroughs beyond manufacturing improvements will be required.

And, fortunately, the government is pumping massive amounts of money into developing some sort of battery industry in the US. Yet, again, one must ask, 'Is the government taking the right approach?'

By 2014, according to recent analysis, major consolidation is going to occur in the lithium battery space due to overcapacity that will shrink some 60 major battery makers worldwide down to just 6 or 8 manufacturers. The key to success will be revenues.

Just before GM went into bankruptcy, GM executives told Congress not to factor the Chevy Volt into GM's ability to increase fleet fuel economy to meet the upcoming increase in CAFE. By 2015, according to the execs, GM will probably have only built about 200,000 total Volts, and many of those might be imported out of the country.

Is that the key to revenue success in the battery space by 2014, when consolidation runs rampant?

Today, it seems we're HOPING for a new automotive future, while throwing a lot of money at our hope, but without any concrete evidence or plans to make our hope a reality.

By 2020, Toyota could be producing as many as 3 million hybrid cars - plug-in conversion-ready hybrids - or more per year while producing as many or more plug-in hybrids and EVs as GM.

If American companies are going to compete in battery-powered revenue, don't they have to compete at battery-powered production? And if American automakers are going to compete at battery-powered production, aren't hybrids and small-battery plug-ins, such as the Prius plug-in, critical to success?

9:23 AM  
Blogger Smurf said...

This post has been removed by the author.

12:38 PM  
Anonymous smurf said...

I've been right there with you Dahc.

You can build 10 hybrids with the Lithium required for one Volt.

2 million hybrids would have a lot more impact than 200,000 Volts.

That same philosophy led to the purchase of my Civic Hybrid. Even if my hybrid only got me a 50% reduction in fuel consumption, I was making an impact "now". I chose not to wait for a "pie in the sky" electric car that had a range of 200 miles and cost less than $25,000. I don't know how many years I would have to wait for such a vehicle...

The gov't needs to adopt the same philosophy with incentives. It needs to spend it's tax incentive money wisely and spend it so it can make an impact "now", not 5 years from now. A $1500 incentive for all hybrids now would have a lot more impact than a $7500 incentive for EV's that haven't even hit the market yet. ....

1:01 PM  
Blogger Dahcredyns said...

sorry about that link confusion, smurf.

it just seems we should be as pragmatic as possible. we can't pace ourselves into the battery revolution. we need to act like beating everyone else to the great battery consolidation of 2015 is a national priority in the same way that beating the russians to the moon was. if not, then we should invest that money elsewhere and prepare for the inevitable.

success means selling as many battery-powered vehicles as possible as quickly as possible. that requires conventional hybrids.

1:08 PM  

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