Lithium Battery Delays and Advancements

Tags: AQMD, PHEV, TM, ESS, QTWW, F, NYSERDA, ALTI, EFL, EV
14 Aug 9:31am
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By John Addison (8/13/07). Toyota Prius enthusiasts may now be forced to wait until 2011 to order a Prius with lithium batteries. It was hoped that the shift to these batteries would give hybrids better miles per gallon and accelerate the availability of a plug-in hybrid sold and warrantied by a major auto maker.

There could be several reasons for the delay. One is that lithium batteries continue to be more expensive than the nickel metal hydride batteries that Toyota now uses. Another is concern about bad press from even a single incident of a thermal runaway. Apparently Toyota in its JV with Panasonic is developing lithium cobalt oxide battery chemistry. A similar chemistry caused some Sony laptops to catch fire.

Warranty requirements of 150,000 miles are a big hurdle, especially in a plug-in hybrid which makes far greater demands on the battery stack than a conventional hybrid.

Toyota (TM) did provide significant encouragement with the announcement that it is demonstrating ten plug-in hybrids (PHEV) and plans to follow with commercial sales. The new Toyota with its NiMH battery pack and has an all-electric range of only 13 kilometers (8 miles) and a maximum speed of only 100 km/h (62 mph) in electric-only mode. Green Car Congress

Eight of the new Toyota PHEV will be demonstrated in Japan. Two will be demonstrated in California, which may currently be the world’s biggest market for hybrids, plug-in hybrids, and freeway speed electric vehicles. California ZEV Program

Toyota’s delays with lithium batteries give General Motors the opportunity to be first. GM plans to sell a 2010 model year Saturn VUE Green Line plug-in hybrid. GM is evaluating using the A123Systems’ nanophosphate batteries.

General Motors and A123Systems will co-develop cells with A123Systems’ nanophosphate battery chemistry for use in GM’s electric drive E-Flex system. The first car likely to use the E-Flex drive system is the Chevy Volt.

A123Systems has received venture capital investment exceeding $100 million. It has demonstrated volume manufacturing success in making over 10 million lithium nanophosphate batteries annually for Black and Decker power tools and other customer applications.

A123 has developed two Automotive Class Lithium Ion cells, the ultra high power AHR32113M1Ultra and the more energy dense AHR32157M1HD. These two cells, designed for HEV and PHEV applications offer extremely low cost per Watt and Watt-hour, respectively.

The AHR32113 uses the new Ultra electrode design, offering yet higher power over that seen in the traditional 26650M1. Alternatively, the 32157 uses a more energy dense electrode, geared for the higher energy requirements of the PHEV marketplace, while not sacrificing the power capability needed for charge-sustaining operation. A123 Battery Details

Altair Nanotechnologies (ALTI) claims double the power density of A123. At the start of the year, Altair issued the following: “On January 9, 2007, we entered into a multi-year purchase and supply agreement with Phoenix for lithium nanoTitanate battery packs to be used in electric vehicles produced by Phoenix. Contemporaneously, Phoenix placed firm purchase orders for 35KWh battery pack systems valued at $1,040,000 to be delivered in March and April of 2007 and placed an indicative blanket purchase order for up to 500 battery pack systems to be delivered during 2007 (projected value between $16 and $42 million).”

Phoenix Motorcars, a private company, announced an order for 200 electric trucks from PG&E, with the first two to be delivered by June. In my recent August meetings at PG&E, I was informed that they had not received the two trucks from Phoenix. Delivery is now expected in January 2008. PG&E stated that there is no order for 200.

During its August 9 investor conference call, Altair announced that Phoenix’s fund raising was not progressing as expected, and that projected 2007 shipments from Altair would not be reached. For Altair, one challenge will be progressing from impressive lab results to low-cost volume manufacturing. Altair lost over $5 million last quarter and only has $20 million in cash left.

The State of New York continues to evaluate converting at least 500 of its hybrids to plug-in hybrids. Electrovaya (TSX: EFL) has delivered a converted Ford Escape SUV Plug-in Hybrid Electric Vehicle (PHEV) to the New York State Energy Research and Development Authority (NYSERDA). Electrovaya uses its MN Series Lithium Ion SuperPolymer cells—a lithiated manganese oxide-based system. Electrovaya's testing indicates 130 mpg for the converted PHEV. Green Car Congress

Recognizing that a 150,000 mile warranty is an obstacle to putting clean PHEV on the road, South Coast Air Quality Management District (AQMD) ordered 30 more plug-in hybrid electric vehicles (PHEV) that are likely to achieve over 100 mpg with 50,000 mile warranties. Ten will be Toyota (TM) Priuses converted to PHEV by A123 Hymotion using A123 lithium batteries. 20 will be Ford (F) Escapes converted to PHEV by Quantum (QTWW) using Advanced Lithium Power batteries. AQMD Award

Tesla gives people the opportunity to drive battery electric vehicles (EV). Unlike the PHEV, the Tesla Roadster does not use a gasoline engine, it is pure electric. The Roadster is hot and pricy, starting at $92,000. In the future, Tesla plans to offer a more affordable 4-door sedan EV named WhiteStar. A secret to making a five-seat sedan electric vehicle for $50,000 will be lowering the cost of the battery stack. While major auto OEMs are betting on new lithium chemistry in larger form factors, Tesla integrates 6,831 commodity 18650-sized lithium-ion cells into the 56 kWh Energy Storage System (ESS) pack. The 18650 size is somewhat larger than an AA battery. The size is popular in a range of consumer electronics. Millions are made in high-volume, low cost manufacturing. Tesla Article

Although the road to clean transportation can be bumpy, in the future, we will have increasingly affordable PHEV and EV choices that allow us to use home and work electric power, saving fuel cost and lowering emissions.

John Addison publishes the Clean Fleet Report. Permission is granted to reproduce this article.

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Cleantech Blog was founded by Neal Dikeman, and all our columnists are experts in their fields. Some of them are available for media interviews and quotes, speaking engagements and consulting. You can find biographies, areas of expertise and contact information for the columnists who have agreed to be available for comments below. Contributing Columnists: * Neal Dikeman, Founder Cleantech Blog, Partner at Jane Capital Partners * Richard Stuebi, BP Fellow for Energy and Environmental Advancement, Cleveland Foundation * Heather Rae, President, Brae Consulting – Sustainability marketing expert * John Addison, Author of Clean Fleet Report, Director, California Hydrogen Business Council * Dr. Peter Beadle, CEO GreenJobs.com, former BP Solar exec Guest Contributors: * Joel Makower, World Leading Sustainability Advocate, Founder Clean Edge * Felix Kramer, Founder, CalCars.org * Nick Bruse, General Manager Clean Technology AustralAsia * Anne-Marie Fleming, President, Investor Ideas, and publisher of leading renewable energy stock web site * Mark Bitterman, Editor, Superconductor Week * Gerry Woolf, Editor, BEST Magazine We also welcome contact from PR firms looking to connect with green, sustainable, and cleantech bloggers. Neal Dikeman: I founded Cleantech Blog in 2005. I am a merchant banker and co-founder of Jane Capital Partners LLC, where I head the energy and environmental practice, and prior to that worked in venture capital, private equity and investment banking in the tech and energy sectors. We have co-founded four emrging startups in cleantech and IT (in superconductors, fuel cells, RF, and carbon credits) since the tech wreck, and advise the technology and venture investment arms of three multi-nationals. In all of it, I have been lucky enough to work with some amazing colleagues, bosses, and partners. Besides Cleantech Blog, I am a contributing editor of AltEnergyStocks.com, and contributing author to Inside Greentech. Along with our own, the blogs I regularly read include Jim Fraser's The Energy Blog, Rob Day's CleantechVC, Tyler Hamilton's Clean Break, Joel Makower's Two Steps Forward, and Inside Greentech. My areas of expertise are always a work in process, but I have been quoted, cited, or interviewed on energy, alternative energy, and cleantech issues by numerous online and print publications including Red Herring, Energy Intelligence, Time.com, Bloomberg, San Francisco Chronicle, Forbes.com, Ethical Investor, Wall Street Reporter, and FT.com among others, on topics ranging from: cleantech, solar, ethanol, blogging, technology commercialization, corporate venture investment, energy prices and policy, technology transfer, carbon trading, and renewable and alternative energy. Feel free to contact me at dikeman@janecapital.com. Mr. Richard T. Stuebi Richard Stuebi has nearly 20 years of experience as an executive, entrepreneur and consultant in the energy industry, with most of the past decade focused on advanced energy technologies. He is currently serving as the BP Fellow for Energy and Environmental Advancement at the Cleveland Foundation, one of the largest community foundations in the US with over $1.6 Billion in assets. He works with various public and private sector stakeholders to promote commercial activity in advanced energy in the Cleveland area. Mr. Stuebi has authored numerous articles that have appeared in such leading industry periodicals as The Electricity Journal and Public Utilities Fortnightly, and has presented at numerous major energy conferences. He is a contributing columnist to Cleantech Blog, writing on alternative energy issues, news and events. Prior to joining the Foundation, Richard founded NextWave Energy, a professional firm focused on capitalizing upon new business opportunities stemming from innovative energy technologies. As President of NextWave Energy, he assisted several emerging and established private-sector clients in various aspects of business development, including strategy and capital formation. Previously, Richard was a senior vice president at Louis Dreyfus, the global commodity trading firm and was a management consultant in the energy practice of McKinsey & Co. Richard earned degrees in economics from the Massachusetts Institute of Technology and Stanford University. His areas of expertise include: Economics in alternative and renewable energy, energy policy, trade, and development. Cleantech finance and technology strategy. You can contact him at rts@nextwave-energy.com. Ms. Heather Rae Heather is a green marketing expert and a long-time advocate of green technology and sustainable business. Through her consultancy Brae Consulting, Heather has worked for energy companies, cleantech startups, and nonprofits (she is currently working with a home energy efficiency program of the Maine Governor's office). Her previous corporate marketing experience includes Xcel Energy (demand-side management and green power) and Qwest Communications. A hands on expert - Heather has practiced what she preached. She is certified in high performance residential building (Green Advantage®) and has served as co-director of Colorado's Interfaith Power & Light. Readers of Cleantech Blog will know that Heather converted a retired school bus into the Brae Bio Bus, a recreational vehicle running on biodiesel (B100) with solar panels for auxiliary power, and recently drove it across the country blogging the experiences in finding biodiesel in different parts of the US. Having reached her destination at Maine Home Performance, a program of the Maine Governor's Office where Heather is helping design programs to certify and link Maine contractors with homeowners who want to "go green", Heather is now tackling the conversion of an 1880s Maine farmhouse into an energy efficiency and green showcase. Heather graduated from Wesleyan University and is a contributing columnist to Cleantech Blog writing on green and sustainable products and marketing from the consumer's point of view. Her areas of expertise include: Green marketing programs and strategies, grass roots green and sustainable programs for consumers, using green technologies in the home. You can contact her at heather.rae@braeconsulting.com Mr. John Addison John is an accomplished writer, speaker, and expert in technology marketing and strategy. He is one of the IT converts that are driving the cleantech industry. Since 1992, his marketing consultancy OPTIMARK, Inc. has provided educational programs, market intelligence, market development and partner development for technology and government leaders. A believer in cleantech's potential to change the world for the better, John is the Publisher of the Clean Fleet Report and serves on the Board of the California Hydrogen Business Council. He is a contributing columnist to Cleantech Blog. He is the author of the book Revenue Rocket on channel marketing in technology, and the upcoming book Save Gas, Save the Planet on what we as individuals can do to help save the planet. Earlier in his career John was an area channel manager for Sun Microsystems. For three years, he led a sales team to 300% annual growth in 15 states, increasing revenue from $4 to $110 million. He has taught courses about marketing and innovation at U.C. Davis and U.C. Santa Cruz Extension. He is a popular speaker in the Americas, Europe and Asia. You can find more of his speeches and articles on his websites Clean Fleet Report and Revenue Rocket. His areas of expertise include: Technology marketing and marketing strategy, channel marketing, fuel cells and the hydrogen economy, alternative fueled fleets, and California's energy tech corridor. You can contact him at johnaddison1@gmail.com. Dr. Peter Beadle Peter is the owner and CEO of GreenJobs.com. He is an is an experienced technology executive and an expert on a wide range of green and energy technologies, including photovoltaics, fuel processing, fuel cells, and oil & gas technologies. Green Jobs is one of the few dedicated job sites for the renewables and cleantech industry. They put out the online Green Directory, as well as a weekly newsletter on People News in cleantech. Peter is a contributing columnist to Cleantech Blog writing on renewable energy news and events. Peter holds a PhD in Physical Chemistry, and previously served President of BP Solar's North American division. Prior to that he held a number of positions in R&D and technology management within British Petroleum. His areas of expertise include: Solar, fuel cells, oil & gas, renewable energy job market You can contact him at Peter@greenjobs.com.