Crave

Toyota Motor plans to produce lithium ion batteries next year for a plug-in hybrid vehicle available in 2010.

The company on Wednesday said that the plug-in hybrid will be "geared toward fleet customers in Japan, (the) United States, and Europe."

A joint venture between Toyota and Panasonic EV Energy plans to begin production of lithium ion batteries next year and move to full-scale production in 2010. Using the battery, Toyota plans to introduce a small electric vehicle for mass production.

Toyota's Prius, numbering a million sold, uses a nickel metal hydride battery. Lithium ion batteries, which are heavily used in consumer electronics, are being built into an upcoming generation of hybrid-electric and plug-in hybrid cars.

Later in the month, Toyota plans to establish a research-and-development center for next-generation batteries that outperform lithiom ion batteries.

The company, which also continues to invest in fuel cell vehicles, recently began a lease program in Japan.

Toyota disclosed on Wednesday its plug-in hybrid production plans at a company-sponsored environmental forum in Tokyo, where it outlined its greenhouse gas reduction and clean-technology plans.

A123 Systems has created a Web site where Toyota Prius owners can preorder a battery to convert their cars to plug-in hybrids capable of getting well over 100 miles per gallon.

The switch from hybrid to plug-in hybrid doesn't come cheap, though. The battery and installation costs $9,995, plus an extra $400 "destination fee" and taxes.

The battery, called Hymotion 5, is designed to fit into the spare tire slot underneath the trunk of Prius model years 2004 to 2008. The company didn't say when the batteries would be available.

The Hymotion L5 battery from A123 Systems converts a Toyota Prius to a plug-in hybrid.

(Credit: Martin LaMonica/CNET News.com)

A123 Systems said the extended-life battery has been tested over 200,000 miles of "real life" conditions and that it should not void Toyota's warranty unless it's directly responsible for a failure.

There are a number of converted plug-in hybrids, but they are not yet manufactured from automakers. Last year, A123 Systems bought Hymotion, which has a network of installers who are expert in plug-in hybrids.

With a plug-in hybrid, a person can boost gas efficiency from about 40 miles per gallon in a Prius to more than 100 miles per gallon depending on what kind of driving you do. If there is a lot of stop and go driving for trips under about 30 miles, the braking system can recharge the battery and substantially cut down on gas use.

The Web site underscores the large interest in plug-in hybrid cars for purely environmental reasons, rather than saving money on fuel.

Rather than calculate the return on investment, the site allows consumers to calculate what sort of gas mileage they can expect and how it will affect their carbon footprint.

Although there are not any production plug-in hybrids, Toyota and General Motors are expected to release their own versions.

GM, in fact, has signed up for a partnership with A123 Systems to use its lithium ion battery with the Chevy Volt, a plug-in hybrid that can run on different liquid fuels.

City driving offers better mileage than highway in a plug-in hybrid.

(Credit: A123 Systems)

SAN JOSE, Calif.--Silicon Valley is sparking a revolution in alternative-fuel autos, but it may take awhile--too long perhaps--to effect change in Detroit, according to a panel of auto executives.

A group of electric and traditional carmakers spoke here Friday at the Joint Venture Silicon Valley conference about innovation, why alternative carmakers are attracted to the Valley, and whether nimble upstarts can overshadow the big Detroit automakers. The consensus was that Silicon Valley is commanding the attention of the auto world, whether it will dominate or not.

"We're not going to take over China or Detroit, but every carmaker has an outpost here and is watching what people are doing," said Felix Kramer, founder of nonprofit plug-in hybrid initiative CalCars. "This can be a real incubation area for new technology in automotive."

To be sure, Silicon Valley is rife with change when it comes to the merger of technology and autos.

Volkswagen, for example, recently funded Stanford University in order to develop a new car lab whose mission is to study "cutting-edge research in safety, comfort, and fun for the consumer driving the car," said Sebastian Thrun, while speaking at an artificial intelligence conference Thursday night. The lab, which will open later this year, will focus on new technologies such as computer-assisted driving--for instance, a car that could park itself. Eventually, self-driving or smart cars could help make driving more efficient and safe, Thrun said.

"When kids can drive themselves to soccer, and do away with the soccer parent, humanity will be better off," Thrun said.

Elon Musk's Tesla Motors, also based in Silicon Valley, is delivering its first production models of an electric two-seater roadster, for a price of nearly $100,000. It eventually plans to sell a four-door electric car for about half the price and then even more affordable models later.

Another Palo Alto upstart called Project Better Place, founded by former SAP executive Shai Agassi, recently announced that it will team with Renault and Nissan car companies, along with the Israeli government, to develop electric cars and electric-battery stations in that nation. It has raised $200 million to produce lithium-ion batteries and the facilities to recharge those batteries--and its cars are expected to be ready by 2011.

Google, based in Mountain View, also recently announced Recharge It, a project to convert hybrids to plug-in hybrids and test vehicle-to-grid technology, in which the vehicle's battery powers the electrical grid. Milpitas-based OEMtek is charging people $12,500 to convert their Toyota Prius into a more efficient car (getting 100 miles per gallon vs. 45 miles per gallon) with a larger battery.

San Dimas-based AC Propulsion, which makes an all-electric Scion eBox for $70,000, is also opening up an office in Palo Alto to service customers here, according to Tom Gage, CEO of AC Propulsion who spoke on the panel. (Gage drives an eBox, an electric car that gets 120 miles on one charge. The company's first customer was actor Tom Hanks.) AC Propulsion also supplies technology to Tesla Motors.

So why is Silicon Valley such a hotbed for alternative cars? It's the customers.

"The driving public here is among the most enlightened in environmental and policy issues," Gage said.

CalCars' Kramer, added to the sentiment: "The plug-in hybrid is the first thing to come here because of popular demand," he said, referring to the movement behind CalCars, Ourpower.org, and Google's plug-in effort. "There's a different customer here in the Valley, and that's why we favor this area."

Backing up his point, 30 percent of the people in the audience said in a poll that they drove a hybrid to the conference.

Byron Shaw, managing director of the Advanced Technology Office at General Motors and who's based here, spoke on the panel about the goals of GM, which is one of the first major car companies to say that it will develop a plug-in hybrid. Shaw said that the company plans to introduce the first rendition of the plug-in Chevy Volt in 2010 along with similar versions for the Saturn. He said that GM will also sell a bevy of alternative-fuel vehicles in the next decade, including electric cars, fuel cell cars, and vehicle-to-grid plug-ins.

"There's an opportunity to bring Silicon Valley and the auto industry together because the two don't always march to the same drum," he said. "We have a wealth of experience of building vehicles, but there are things changing that now, such as the conventional cost of fossil fuels. In the same way Silicon Valley has driven down costs of technology, it may happen with the auto industry, too."

That said, GM is slower than the technology industry, he said, and the company is driven by a fickle consumer. One consideration, for example, is that the battery for a hybrid plug-in must operate well in cold climates like Minnesota as well as warmer places like Phoenix. "The supply base just isn't there for electric vehicles," he said.

AC Propulsion's Gage said that after working in Detroit for eight years, he's seen that car companies can change for the consumer, but it will be especially challenging in the alternative fuel market.

"It's a major transformation for the car companies," he said, "the power train is different; fuel sources are different. We have to start small and build a market base, and it has to appeal to consumers. To come back to this, Silicon Valley is more advanced in this area. Grassroots efforts will continue."

CalCars' Kramer went further with his criticism.

"They're being too slow. It's a major wedge for climate change. They need to learn about versioning--getting cars on the road and seeing what people like," Kramer said.

The panelists finished by predicting how many cars would be electric or plug-in hybrid by 2028. Two of the men, Shaw and Kramer, forecast that it would be 80 percent of cars on the road by then. Gage was more conservative at only 20 percent. The question is: Will that be enough to turn the tide of global warming?

If you've got a fancy job in the Bay Area, you're probably going to get the sales call from Sass Somekh.

Somekh, the former president of equipment maker Novellus and an alum of Applied Materials, has started OurPower.org as a way to promote plug-in hybrid conversions. Converting a regular Prius to a plug-in isn't cheap. The price runs about $10,000. Even if gas rises to $4 a gallon, it would still take nearly 100,000 miles of driving before you broke even. (OurPower.org is working with A123 Systems, the lithium-ion battery maker, to perform the conversions.)

Rather than try to promote this on the mass market, Somekh is hitting up CEOs and other heavy-hitters in the area. If they convert their cars, the reasoning goes, their ever-obsequious vice presidents will follow.

So far, he seems to be drawing a crowd. People who have committed to a conversion include Aart J. de Geus, chairman of Synopsis; Erik Straser, a partner at Mohr Davidow Ventures; Gary Dickerson, CEO of Varian Semiconductor; and Cal Chow, CEO of Nanosys.

Plug-ins are better for the environment in most states than regular gas because they get 100 miles a gallon or so. (In Ohio and other coal-heavy states, plug-ins are close in total emissions to regular cars.) Out of all the alt fuel car concepts swirling around these days, plug-ins seem to have the broadest support.

Somekh also has formed a small venture firm focused on green investments called Musea Ventures. The firm was one of many that put money into Project Better Place, Shai Agassi's company that will install electric charging stations as a way to promote electric cars and plug-in hybrids.

One of the criticisms of electric cars has been the range. They can only go 250 miles or less on a charge. One idea that might get around that problem: electric car companies, in conjunction with electric charging stations, could allow customers free use of gas cars kept on-site or in the hands of car rental organizations like Zipcar. That way, you could buy an electric car and, when you need it, get your hands on an SUV for a long trip into the mountains.

Somekh reiterated that he doesn't speak for Project Better Place, but it's an interesting idea.

Fisker Automotive formally unveiled its upscale hybrid car today and said it has received an infusion of cash from Kleiner Perkins Caufield & Byers.

Ooooh. Ahhhh.

(Credit: CNET Networks )

The investment is believed to be the first direct investment by Kleiner Perkins into an alternative car company. (Rumors swirled that the company invested in Phoenix Motorcars, but it was never confirmed, and Phoenix subsequently had delays). Fisker did not officially release the amount of the investment but Kleiner partner Ray Lane told the Wall Street Journal that the investment exceeds $10 million.

The company is founded by noted automotive designer Henrik Fisker. He came up with the BMW Z8 and the Aston Martin DB9, among other cars that most of us can't afford. Fisker's Karma (the name of the car) will cost around $80,000 and go from 0 to 60 in six seconds. It has a top speed of 125 miles an hour. The picture comes from the Detroit auto show taking place this week.

The Karma operates like the Chevy Volt. The car runs on lithium-ion batteries, which get recharged by a small gas motor on the car. The battery can also be recharged from a plug in the wall. Because the Karma can go fifty miles on a charge, most people won't even use gas on their daily commute: the average commute in the good ol' USA is 40 miles a day. An integrated solar panel in the roof helps charge it up while driving.

Fisker, which talked about the car last October at a conference in Silicon Valley, wants to start producing cars in the fourth quarter of 2009. If it hits its goal, it could become the first company to sell factory-built plug-in hybrids. Toyota and GM have said they will come out with plug-in hybrids by 2010. Fisker wants to ultimately sell 15,000 of the cars a year. That could be a stretch, but the high-end car market is growing all the time. The company will also do two-door versions and SUVs.

Expect to see the hybrid vs. electric debate heat up quite a bit this year. On the hybrid and plug-in hybrid side sit Toyota, GM, Fisker, and a few others. On the all-electric side sit Tesla, Miles, Phoenix, etc. Then there are companies like Nissan Venture Vehicles that will do both. Plug-in hybrids don't get the same gas mileage as full electric cars, but they can go a few hundred miles before conking out--electric cars tap out at 120 to 225 miles. Plug-ins also run on smaller batteries, which lowers the price. Experts such as James Woolsey, former CIA director and now energy guru at consulting firm McKinsey, lauds plug-ins, as do others. But ultimately, the customer will decide.

The hybrid drive system in the Karma comes from Quantum Technologies, which has worked in the automotive industry for years on various non-fossil fuel technologies. Quantum is also an investor.

We wrote about Fisker Automotive's sporty plug-in hybrid last week and now here is a picture.

The company is planning to come to market in about 18 months with a high-performance, high-end plug-in hybrid sedan. The car will cost $80,000. It will go about 50 miles on a battery charge, which isn't far, but the car will also come with a built-in gas engine that exists primarily to charge the battery. With the charging capability, the car can go around 620 miles before conking, according to Henrik Fisker, the company's CEO.

How's this for a plug-in hybrid

(Credit: Fisker Automotive )

With a range of hundreds of miles, the car will go farther than other electric cars coming to market. The new electric cars go only about 225 miles on a single charge at best. Granted, Fisker's car uses a little gas--something electric cars don't--but it won't burn much.. Long range and lower costs are the advantages plug-ins have over all-electrics. If Fisker hits its goals, it will have cars on the market in 2009.

Fisker also hopes to come out with SUVs and other types of cars. The drive train comes from Quantum Technologies, by the way. Quantum works with a number of companies and government agencies on alternative fuel vehicles. Initial production will be about 15,000 vehicles a year. It has received investment from Palo Alto Investors.

The company will show off a prototype in at the Detroit Auto Show in 2008.

In this day and age, it seems everybody has started an alternative car company. There is Tesla, Miles Automotive, Zap, Venture Vehicles. Everyone but my grandmother, and that's because we took her license away.

But Fisker does have something a lot of these other companies don't. Namely, experience in the auto industry. Henrik worked for years at Ford and BMW. He came up with the BMW Z8 and the Aston Martin DB9.

Fisker Automotive. Think of it as a marriage between the Chevy Volt and the Tesla Roadster.

The company is planning to come to market in about 18 months with a high-performance, high-end, plug-in hybrid sedan. The car will cost $80,000. It will go about 50 miles on a battery charge, which isn't far, but the car will also come with a built-in gas engine that exists primarily to charge the battery. With the charging capability, the car can go hundreds of miles, according to Henrik Fisker, the company's CEO.

With a range of hundreds of miles, the car will go farther than other electric cars coming to market. The new electric cars go only about 225 miles on a single charge at best. Granted, Fisker's car uses a little gas--something electric cars don't--but it won't burn much. This is how the Volt functions. General Motors, however, doesn't plan on coming out with the Volt until 2010. If Fisker hits its goals, it will have cars on the market in 2009. Fisker, though, is also aiming at the luxury end of the market with its alternative car, which makes it like Tesla. Its tag line is "Eco-chic."

Fisker also hopes to come out with SUVs and other types of cars. The drive train comes from Quantum Technologies, by the way. Quantum works with a number of companies and government agencies on alternative fuel vehicles. Initial production will be about 15,000 vehicles a year.

The company will show off a prototype at the Detroit Auto Show, according to the company's somewhat cryptic Web site.

In this day and age, it seems everybody has started an alternative car company. There is Tesla, Miles Automotive, Zap and Venture Vehicles. Everyone but my grandmother, and that's because we took her license away.

But Fisker does have something a lot of these other companies don't. Namely, experience in the auto industry. Henrik worked for years at Ford and BMW. He came up with the BMW Z8 and the Aston Martin DB9.

Thanks to Greg King of Wostec for pointing out the Fisker presentation at the Dow Jones Alternative Energy Innovations Conference taking place in Redwood City, Calif., this week.

Honda is upping its production of gas-electric hybrid cars, but has no immediate plans to develop the kind of hybrid that would recharge from an electrical outlet, the company announced Tuesday.

Honda CEO Takeo Fukui also publicly criticized General Motors for its pursuit of the Chevy Volt at a press conference on Tuesday in Japan.

If that kind of high-performance battery power is possible then carmakers would be better served making a completely electric vehicle from an environmental standpoint, said Fukui, according to the The Wall Street Journal (subscription required).

Honda is scheduled to release several environmentally friendly vehicles at the 2007 Tokyo auto show this week. Among them may be a hybrid sports car and a diesel-engine car that gets 60 mpg.

GM has been touring its Chevy Volt, a plug-in hybrid electric car that it plans to make available to consumers by 2010, across the U.S. since its debut at the Detroit auto show. The Volt could possibly run off lithium-ion battery power alone for about 40 miles, according to GM.

Many critics have raised questions as to whether that battery type, more commonly used in laptops, could be cost effective and energy efficient for car use. GM has said it's developing the necessary technology to make a lithium-ion battery hybrid successful and plans to test out the Volt as soon as spring 2008.

The news follows statements made Monday by Toyota that it's taking its time to develop a plug-in hybrid to address questions of cost, efficiency and consumer interest.

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.