High-performance battery manufacturer, A123 Systems announced that the company has raised $69 million to help expand its lithium-ion battery manufacturing facilities in Massachusetts and Michigan.
GE Energy Financial Services and GE Capital's Equity unit ponied up $15 million of the total financing, making this GE's seventh investment in the company. Overall, GE has pumped $70 million into the company, thereby increasing its ownership to more than 10 percent.
A123 currently has an automotive portfolio which includes 19 different hybrid and electric vehicles, spanning several different companies. The company actually announced last week that A123 will be supply high-performance lithium-ion batteries to Chrysler. These will be used for Chrysler's new electric and range-extended electric vehicles.
Chrysler expects to have three different electric vehicles on the road by 2013.
And FEV, Inc. announced today that it will soon unveil a Hummer H3 Range-Extended Electric Vehicle at the 2009 SAE World Congress next week. Here's what FEV President, Gary Rogers, had to say about the vehicle...
"Our goal in exhibiting this particular vehicle is to demonstrate that electric vehicle technology is a viable solution for a variety of vehicle platforms. Needs of consumers will continue to vary, and the Hummer range-extended electric vehicle shows that fuel economy does not necessarily mean sacrificing power and utility."
The plug-in series hybrid design, which was developed by Raser Technologies (NYSE:RZ), delivers 40 miles in all-electric mode, with a 100 mpg fuel economy.
Also in "clean car" news, the European Investment Bank Board of Directors has approved US$1.14 billion in loans to European automakers that are producing cleaner vehicles. Jaguar Land Rover landed US$ 498.2 million of the funding, and Nissan's European operations picked up $534.6 million.
Jeff
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How do these guys at Raser come up with their 100 MPG? Simple, they claim that if you drive 60 miles per day that the first 40 is powered by electricity and the next 20 is provided by their 33 MPG onboard engine. Therefore, only 1/3 of the distance traveled was provided by gas at 33 MPG, so it's as though you got the equivalent of 3 times 33 MPG, which equals 100 MPG.
Now let's see what Raser isn't telling you. First, their 200KW electric motor costs MONEY to operate! How much, you ask? Easy. If you drive 40 miles on electric power -- half in the city and half on the freeway -- you will spend about 1 hour driving (20 miles @ 30 MPH = 40 minutes, plus 20 miles @ 60 MPH = 20 minutes). Raser's 200KW motor is rated at 100KW continuous, so 1 hour of driving will likely consume roughly 100KWH worth of electricity (100KW times 1 hour). The average cost of electricity in the U.S. is 11.5 cents/KWH; therefore 100KWH costs you $11.50, got it? That's eleven dollars and fifty cents to go forty miles!!! Luckily, you get to go the next 20 miles on good old gasoline @ roughly 33 MPG, which would consume 6/10ths of a gallon of gas if the gas engine powered the vehicle directly. Unfortunately, it first has to power a generator, which then charges batteries, which then powers the electric motor. Still, lets be generous and assume that this gas engine takes you 20 miles on 2/3 of a gallon of gas, which costs $1.67 (2/3 times $2.50).
So the grand total to travel 60 miles in Raser's shiny EREV (Extended Range Electric Vehicle) only cost you $13.17!!! Isn't that great? Of course, you would've only spent $5.00 if you could've driven all of that distance powered by their good gas-mileage IC engine. Or you could've paid $7.50 in any vehicle that averaged 20 MPG. However, where's the fun in that? Look, you're driving a high tech "EREV"... ooooh! One that cost you an extra $25K, and that added an extra 1,000 pounds of weight to the vehicle. Nice extras, huh?? BTW, did I forget to mention that their 200KW motor only provides 134HP in continuous mode? But wait you say, it gives 268HP at peak operation. Yes, that's about what the new Ford Taurus provides (except for the Ford Taurus SHO, which gives 350HP). So you'll be riding around in your new EREV Hummer in a reduced 134-268HP powertrain... can you say "put, put, put"?
Does anyone see anything wrong with this?? Now do you see why Raser omitted mentioning the cost of electricity and only focused on their fuzzy-math MPG gas equivalent calculation? In reality, at today's prices, their Hummer only got the equivalent of 11.4 MPG ($13.17 divided by $2.5/gallon = 5.27 gallons, and 60 miles/5.27 gallons = 11.4 MPG)!!!!!!!!
The fact is that electric vehicles have NOTHING to offer in solving America's transportation needs. They are not cost-efficient nor are they technologically superior. The demand for electricity in the U.S. is expected to grow by a taxing 25% over the next decade. Raser's Hummer draws 100KWH of electricity in order to travel it's first 40 miles, which is well over 3 times the power that your house draws in a complete day! Talk about an instant energy crisis! It's a good thing that battery technology is still limited and that they added an IC engine to extend the range, otherwise their Hummer would've used 150KWH of electricity, or more than 5 times the daily draw of an average home!!
This conveniently omitted information might explain why Raser has also entered the geothermal power market… they realize that switching to EV's would require well over a 300% + increase to America's annual electric power consumption.
My question is this, why couldn't Raser be upfront and honest with us about the true costs of Electric Vehicles? Afterall, consumers have shown that they are willing to pay more for efficient green power.
Could their hesitancy in telling us the whole story be due to the fact that EV's are neither cost-efficient nor green compared to standard IC engine technology?