September 18, 2007 12:08 PM PDT

Start-up promises to slash the costs of plug-in hybrids

by Michael Kanellos
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EnerDel says it will come out with a lithium-ion battery for plug-in hybrids that will cost $1,500, a development that could go a long way to making these cars palatable in terms of price.

The Indianapolis-based company, which recently received a $6.5 million grant from the United States Advanced Battery Consortium (USABC), hopes to deliver the battery to car manufacturers for their 2010 lineups, according to Charles Gassenheimer, vice chairman of the company. The 2010 model cars will start coming out in September 2009, he said.

By then, there will probably be 65 hybrid cars on the market, he estimated. Right now, there are 15, he said. No major manufacturers currently make plug-in hybrids. Plug-ins have larger batteries than conventional hybrids, can be charged through a socket and get better gas mileage. However, they cost a lot at the moment. Converting a hybrid to a plug-in costs about $15,000, money that even plug-in hybrid proponents admit is nearly impossible to make up for with better fuel economy.

"You're not going to spend thousands of dollars to save $600 to $700 at the pump a year," Gassenheimer said. "Until you make this a positive return on investment, you won't see these (plug-ins) at 50 to 80 percent penetration."

EnerDel will mostly aim at selling batteries to manufacturers to incorporate into cars coming off the line and not aftermarket modifiers.

How much cheaper will an EnerDel-energized plug-in hybrid be compared to a regular one? It's hard to say. Gassenheimer, though, asserts that the company's batteries will cost half as much or less as nickel-metal hydride batteries, which are used in some plug-in retrofits these days. The price the company is quoting is fairly cheap. The National Renewable Energy Lab has put out reports estimating that the battery price should be able to come down to $2,500 or more. So if EnerDel could hit its goal--and it's an if--it could help. The grant will be used to drive costs down further.

The company's basic technology was coined by Peter Novak, a scientist and former member of the Russian Academy of Sciences. The batteries also rely on technology from Japan and packaging know-how from Delphi.

The battery is a lithium titanate battery. Competitor Altair Nanotechnologies uses a similar chemistry. Meanwhile, A123 Systems, which has received millions in venture funds, builds a lithium potassium battery. Gassenheimer stated that his company's lithium titanate batteries run at lower temperatures than potassium ones and thus are more safe. Lower operating temperatures also mean that car manufacturers won't have to include additional cooling systems for the battery alone. (Notebooks use lithium cobalt batteries, which run hotter.)

The technical and marketing issues for EnerDel, and the plug-in industry in general, still need to be fine-tuned. But customers are receptive to the idea, according to Gassenheimer.

"This is a major supply problem, not a demand problem," he said.

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by cyberdigest September 20, 2007 10:33 AM PDT
I have a new "green company" interested in the plug-in hybrid business as an aftermarket modifer. My question is... Will it be 2 years before I can buy the EnerDel Batteries? What about Altair Nanotechnologies batteries... when will they be availabe? Will this lithim titanate battery be the standard for plub-in hybrids? Thanks
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$1500 PHEV battery
by JerryH2007 September 25, 2007 1:54 PM PDT
The estimated future selling price for a hybrid electric vehicle (HEV) battery pack is close to your $1,500 number, but the selling price for a plug-in hybrid electric vehicle (PHEV) and an electric vehicle (EV) will be an estimated two times and four times the price of an HEV due to the increased number of cells required. Also, the $1,500 number will depend upon economies of scale from volume manufacturing and learning curve experience, which is significant in battery production.
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Electric Car Economy
by EV Lover September 29, 2007 1:19 PM PDT
Finally, plug-in and hybrid car numbers are coming into line with high projected consumer demand for such models. Lithium and Nickel prices are not prohibitive; mass production of such batteries will quickly cut their prices at least in half.
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RACKPACK
by trueBlue444 October 9, 2007 7:47 AM PDT
The RackPack2 beats the EnerDel system on every front including price plus it has more features at a lower cost and the actual patents. They are at www.deviceconduit.com. The EnerDel is another super-battery pipe dream that has a few prototypes and HOPES they can get millions of orders by 2010. The RACKPACK exists today. Device Conduit taught Delphi how to do it so expect legal things...
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