Chrysler and A123: Great Green PR but......

A Chrysler EV at the LA auto show

I'm out of shape. Yet, yesterday I finished a concrete patio that required thousands of pounds of ready mix - hand mixed 90# bag by 90# bag.

So, if I'm more cynical that usual, it's only because I'm hurting.

Still, when I read about the Chrysler / A123 partnership on EV batteries, I couldn't help but think, GREENWASH.

Already, President Obama's task force has stated that the Chevy Volt really can't help GM's bottom line any time soon. In fact, the Volt might not be profitable for at least another decade or more.

On the other hand, the task force is less than 30 days from forcing Chrysler into bankruptcy if they don't merge with Fiat. So, can EVs really be expected to help Chrysler's bottomline sooner than GM's?

Who cares? Green press is good - even if it isn't realistic - and this announcement is especially good. It's two US companies. So, it isn't just Chrysler auto jobs, but also high tech battery jobs - perfect for Obama's green, high tech, clean energy plans.

Sounds great. It has grant and government loan written all over it, which is fine. I love A123Systems. Still, if gas prices aren't sustainably doubled, at least, in the next few years, the idea that lithium will make help make Chrysler viable in the next decade is pure fantasy.

Volt plans in A123Systems' loan request?

All Chrysler, or something else?

Not long ago, A123Systems was in the running for the first Chevy Volt battery contract, but it didn't win. Nonetheless, and immediately, GM announced that A123Systems was still under consideration for future generations of Volt battery contracts (and who knows about dual mode plug-ins, such as the proposed Saturn Vue).

Nonetheless, regardless of the Volt contract, A123Systems has serious potential business with a number of other players, such as Chrysler, Better Place, and Nissan. So, the fact that A123Systems is trying to start a lithium battery factory in Michigan with $1.8 billion in government loans isn't that surprising.

GM's Volt buddha, Bob Lutz, stated, "At GM, we see the development of vehicles powered by electricity as key to the transformation of our industry. And advanced battery technology, is at the heart of this transformation. A123's proposal to manufacture advanced battery cells and packs right here in the United States is a positive development for our industry and the nation."

Here! Here!

So, do GM and Lutz believe in the potential of Ford and Chrysler EVs then? Is the Volt not so special? Or, is GM also still very interested in A123Systems as a partner in electrification and, therefore, very interested in such government contracts?

I'm probably reading too much into this loan request, but I certainly hope I'm barking up the right tree.

I've had the opportunity to meet David Vieau, A123Systems president and CEO, and I have absolute faith in that firm. Yes, they're still an up-and-coming company, but GM - as an American company - owes A123 serious consideration, and I get the feeling they are going to get it one way or another.

I know I'll have my fingers crossed for A123.

Tax credits for plug-in conversions - Another congressional failure?

More proof Congress is inept?

In my opinion, Congress was very motivated by the Chevy Volt when it came up with its tax credit plan for battery-powered vehicles. GM is an important American company, so this protectionism isn't surprising.

Yet, already, plug-in hybrids and other electric vehicles have caused some auto analysts to question the importance of automakers as we head into the future. If the future of the automobile is electrification, then the most important technology for that future is batteries. Those whom control this technology might just be the drivers of the future's auto industry.

Today, there are hundreds of hybrid vehicles that have been converted into plug-in hybrids via A123Systems - also an American company. Why not reward a company like A123 for these conversions? With hundreds of thousands of hybrids - plug-in conversion ready - on US roads now, A123 would be in a position to become a major player in the electric future TODAY if the government provided tax incentives for conversions.

But why do today what you can always do tomorrow, right?

A123Systems and the perfect hybrid battery

Made in America

About a month ago, when Chrysler announced its new plug-in vehicles, it seemed hard to believe that Chrysler might be as close to plug-ins as GM and the Chevy Volt. But there are now a few tantalizing details about the batteries powering Chrysler's ENVI, or electric drive initiative, vehicles that should spark any hybrid fan's interest.

Chrysler's batteries were developed in coordination with GE under a DOE grant, and the batteries took a slightly different path than other lithium batteries, using two chemistry's rather than one - one for power and one for energy.

Along with $55 million dollars, GCG is reporting GE has also conveyed this battery research to A123Systems, a company of which GE now owns 9 percent. Aside from providing batteries for many Toyota Prius conversions, A123 also developed lithium batteries for Volt testing.

This dual lithium chemistry could be the key to the widespread concerns regarding lithium longevity, especially in hybrid cars. Hopefully, this isn't just pre-IPO hype.

2 battery packs for every Volt

Battery replacements in the warranty

Thus far, whenever GM discusses the ongoing lithium ion battery tests for the Chevy Volt, it's all sunshine. Yet, GM is also assuming that many Volts will need to have their lithium battery packs replaced while under warranty. But, no worries, lithium costs will quickly come down, at least that's GM's position, but is GM assuming too much, or demonstrating bold leadership?

Finish: 2 battery packs for every Volt

2010: Year of the plug-in hybrid conversion?

A Plug-in hybrid converted by A123Systems

In 2010 a number of plug-in hybrids will be hitting the streets of America. GM plans to launch both the Saturn Vue hybrid and the Chevy Volt, while Toyota will release a plug-in version of the Toyota Prius. A number of plug-ins from niche automakers might also become available in 2010. Unfortunately, GM plug-in hybrids will be available in very limited numbers the first few years and Toyota might only make their plug-ins available for fleet sales.

By 2010, however, a number of second generation Prius hybrids will be 6 plus years old. Obviously, these hybrid cars will still have a lot of life left in them, but what if the fuel economy of these hybrids could be more than doubled for less than $5,000?

Finish: 2010 - Year of the Plug-in Hybrid Conversion?

Lithium shortage to kill next gen hybrids?

Not a chance!

So, last night I was nursing a glass of wine while discussing why the Chevy Volt should or should not be called a hybrid vehicle with some GM Volt engineers and David Vieau, President and CEO of A123Systems - one of GM's Volt battery partners. Eventually, that conversation ended and I started asking David a bunch of questions about lithium batteries.

Finish: Lithium shortage to kill next gen hybrids?

A123Systems aquires more money for Volt battery

$30 million round of funding completed

A123Systems acquired $30 million to continue the development of its patent-pending lithium-ion battery technology which could play a big role in the future success of hybrid cars, plug-in hybrids, and electric vehicles.

Already, A123Systems has a contract with GM to develop batteries for the Chevy Volt plug-in, as well as other E-Flex platform vehicles, of which the Volt is just one variation, one iteration. Thus, If A123 is successful, the future looks, well A+, so I'm sure obtaining funding isn't that hard.

Lithium hybrids: Dangerous or expensive?

Is the race to the first plug-in hybrid just a PR exercise?

When GM signed an agreement with A123Systems to develop lithium batteries for the Chevy Volt plug-in hybrid, Bob Lutz claimed the move gave GM the lead over Toyota to be the first to market with plug-in hybrids and electric vehicles.

While the GM faithful filled the blogosphere with their 'the Toyota Prius is dead rants', I could only be amused.

Hymotion, owned by A123Systems, has converted numerous Toyota Prius hybrids into plug-in hybrids that achieve more than 100 mpg. So, if GM's lithium battery partner can convert the Prius into a plug-in hybrid, why can't Toyota? Or, is something else going on?

Finish: Lithium hybrids: Dangerous or expensive

Does GM have a lithium advantage with hybrids?

GM's hybrid ace?

I'm a huge hybrid advocate, obviously, which also means I've been a huge critic of American automakers because they just don't have much to offer when it comes to hybrid vehicles. Additionally, there won't be a full American hybrid car for, for who knows how long - it's all hybrid SUVs.

Certainly, the Ford Escape hybrid, the GMC Yukon hybrid and the Chevy Tahoe hybrid are all significant improvements upon their conventional counterparts, but how about some hybrid cars?

To date, the biggest hybrid car news coming from Detroit has been the Chevy Volt, a plug-in hybrid. Unfortunately......Finish: Does GM have a lithium advantage with hybrid vehicles

GM solidifies Volt battery partnerships

Agreement to speed up development?

The key to GM's future success will almost certainly be driven by the E-Flex platform - the powertrain that will power the Chevy Volt, for example.

They key to the Volt and the E-Flex platform is lithium batteries. Consequently, GM has solidified its partnerships with lithium-ion battery makers A123Systems and LG Chem.

"Breakthrough battery technology will drive future automotive propulsion, and the company that aligns with the best strategic partners will win. That's what is so important about this deal," said Bob Lutz, GM vice chairman of Global Product Development. "Whether you're talking about the Chevy Volt, a fuel cell or even a plug-in hybrid such as our planned Saturn Vue, we need to understand the fundamental battery cell performance."

The reality of plug-in hybrid conversions

A Toyota Prius prepped for plug-in conversion

It was great to watch an actual plug-in hybrid conversion this weekend at Hybridfest in Madison, WI. It was equally as great to speak with plug-in conversion specialists, such as Davide Andrea and Ann Colcord of HybridsPlus.

Unfortunately, however, it isn't all great news regarding plug-in hybrid vehicles.

--> Finish: Reality of plug-in hybrid conversions

Is A123 ahead of Toyota in lithium?

All charged up!

Today A123Systems offered a press release on its partnership with Google to convert a number of hybrid cars into plug-in hybrid vehicles. While the release didn't offer any new details versus Google's press release, it did get me thinking.

Is A123Systems lithium chemistry better than Toyota's?

We know that Toyota is probably going to delay its third generation Prius, at least in regards to the use of lithium. Is this because Toyota has had problems, or is it just because laptop explosions have pushed Toyota into more testing? We just really don't know. Yet, Toyota's lithium-powered hybrids were not going to be plug-ins - a technology which tests lithium even further.

So, is Google taking a risk with its fleet? Is A123Systems hybrid battery technology better than Toyota's? Or, is a small fleet quite different than mass production?

A123 Hybrid plugged on Kudlow

Kudos to A123Systems

As I was watching a debate on gas gouging on Kudlow and Company today, a Toyota Prius converted into a plug-in hybrid vehicle by A123Systems was used as a case-in-point for what America should be doing. The Prius plug-in hybrid achieves 150 mpg with today's technology - good thing the U.S. Senate appears to be setting the fuel economy bar at 35 mpg by 2020!

Yeah, hybrid cars sure are stupid. I mean 150 mpg? That's just too much, too fast. We like to be a little more complacent, a little more conservative here in America, especially when gas prices are approaching $4.00 per gallon and soldiers are dying in Iraq to protect our oil interests.

Damn innovation! Damn technology! Damn the Prius! Damn A123!

A123 Systems buys plug-in conversion company

Lithium battery maker buys Hymotion

A123 Systems, a leading developer of lithium-ion batteries, has acquired Hymotion, a hybrid-to-plugin hybrid conversion company according to A123.

"BREM (Battery Range Extender Modules) technology is the near-term answer for plug-in hybrid vehicle technology and, thanks to recent joint contracts with NYSERDA and the South Coast AQMD, no company had nearly as much real-world data on engineering aftermarket modules with A123Systems' batteries as Hymotion," said Akos Toth, Co-Founder and Director of Engineering of Hymotion. "Joining forces with A123Systems enables us to more efficiently address demand for plug-in hybrid electric vehicles today."

Some day soon, perhaps, BREM technology will make old hybrid cars much more valuable - as platforms to develop plug-in hybrid vehicles!

Batteries: The key to the automotive Revolution? Part 1

President Bush at Johnson Controls

Just before the Detroit Auto Show, Toyota started hyping its FT-HS hybrid concept, a next-generation hybrid produced with lithium-ion batteries. As a result of these new batteries, Toyota was able to develop a hybrid sports car capable of achieving speeds of 0 -60 in less than 4 seconds, yet using the fuel of only a 4 cylinder economy car.

Likewise, GM announced the future was electric, plug-in hybrids were coming, and lithium-ion battery contracts had been awarded. Then at NAIAS GM upped the ante and debuted the Volt plug-in hybrid concept, an auto capable of achieving up to 40 miles per charge on pure electricity and up to 150 mpg if traveling 60 miles or less between charges. Additionally, the vehicle has a range of more than 600 miles.

In both cases, lithium-ion batteries enable each of these hybrid vehicles to achieve such amazing results. Consequently, batteries are beginning to emerge as one of the most important technologies behind the automotive revolution.

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