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Next-gen batteries part 2: Changing landscape for supplier partnerships

Here’s the second part of the feature on what’s next for electric vehicle batteries. This time, the focus is on battery manufacturer partners for a few of the top selling global EV models.

Tesla Model 3 getting batteries from new suppliers
Tesla is the top selling electric vehicle brand in the world, and is doing well in four EV segments — sedans, SUVs, compact cars, and sports cars. Much of that comes from the power under the hood. The hp and torque can send you on a silent rocket launch when you take a drive. The battery packs play a vital role in keeping them charged for long distances and staying dependable, longer than what competitors offer. The battery cells had been exclusively manufactured by Panasonic, and the battery modules and packs by Tesla; but that’s starting to change.

Tesla has reached a new three-year deal with Panasonic for battery supply at its Gigafactory in Nevada. The two partner companies made that facility the largest lithium-ion battery factory in the world. Last year, Tesla started breaking off with Panasonic by limiting Model 3 production with the Japanese company. Tesla started making moves to build its own batteries. This year, there was an announcement of the first million-mile battery cell that will be launching in the China market. It’s being developed with a new partner, China’s Contemporary Amperex Technology (CATL), the world’s largest lithium ion battery maker. China is an excellent market to be in, with the China Association of Automobile Manufacturers reporting that new energy vehicle sales were up 19.3 percent in July and the overall market rebound continues.

Tesla vehicles produced in Gigafactory Shanghai are powered by battery cells built by LG Chem and CATL. South Korean company LG Chem expects its battery share to grow significantly, with Tesla’s business in China being part of it. The battery maker reportedly secured a large order of batteries from Tesla in July due to high demand, and Tesla’s inability to produce enough batteries on its own. Besides China production, LG Chem may be changing over production lines in South Korea to produce more batteries for Tesla.

BAIC EU-Series bringing in new partner
China-owned carmaker BAIC Motor, the parent company of the BJEV and Senova brands, has been getting its EV batteries from China’s third largest battery maker, Guoxuan High Tech. Guoxuan follows first-place CATL and second-place BYD for China’s new energy vehicle battery market share.

BAIC will be adding SK Innovation’s NCM 811 cells to its EVs. SK Innovation Co. is based in Seoul, South Korea, and is primarily known for being a petroleum refining company. It also supplies batteries to Volkswagen and Ford. The BAIC deal is expected to start sometime during the second half of 2020, with the lithium-ion cells being produced at SK Innovation’s first plant in Changzhou, China. It will be owned by a wholly-owned joint venture between the two companies and Beijing Electronics.

Nissan Leaf stays with AESC under its new owner
Nissan has always taken a slow and conservative approach to producing, selling, and developing changes to its stalwart Leaf model. The battery pack has been made by its former subsidiary, Automotive Energy Supply Corporation (AESC). The Japanese maker sold most of AESC to Chinese renewable energy company, Envision Group, in 2018. Nissan still holds a 20 percent stake in AESC. The 2018 deal also included Nissan selling Envision Group its battery manufacturing plants in Tennessee and in Sunderland, England.

A production version of Nissan’s next EV, an electric SUV based on the Leaf, is expected to begin arriving in showrooms in 2021. The company expects it to sell at a higher volume than the Leaf. Envision Group has plans in place to triple AESC’s lithium-ion cell manufacturing capacity. The company hopes to be ready for producing batteries for Nissan’s next-generation EV, and to continue supplying the Leaf.

In May, Nissan, Renault, and Mitsubishi reaffirmed their automotive Alliance, and will be increasing sharing platforms, technology, and production. The Renault-Nissan-Mitsubishi Alliance had been in doubt after the arrest in Japan of former chairman Carlos Ghosn, who’d been a champion of EVs for the brands. In Europe, B-segment cars will be one of the segments in the Alliance and includes the Renault Clio and Zoe EV, Nissan Leaf, and upcoming Ariya EV SUV. Renault takes the lead in Europe under the Alliance, with Nissan being the lead brand in China, North America, and Japan; and Mitsubishi leading in the South-East Asia (ASEAN) and Oceania regions (several islands including Australia).

BYD supplies its own batteries for BYD Yuan / S2 EV
BYD supplies its own electric vehicle batteries, and was ranked third in the world for lithium ion battery producers during 2018, following No. 1 LG Chem and and No. 2 CATL (in a Bloomberg study). The company supplied batteries for its 229,506 electric vehicles sold in 2019.

That will expand to include Ford Motor Co. On June 1, a document was filed on the website of China’s Ministry of Industry and Information Technology following official protocol. BYD batteries will support Ford’s electric vehicle production in China. Ford’s China joint venture with Changan Automobile is seeking government approval to build a plug-in hybrid EV model equipped with BYD’s batteries, according to the document. The deal will also include BYD’s power management devices that Ford will use.

Renault Zoe sharing large plant with VW Group
Renault is acquiring EV batteries for the Zoe electric small car from LG Chem’s Wroclaw, Poland, facility. The South Korean battery maker hasn’t shared figures on the plant’s output, but it may be on its way to become Europe’s largest EV battery production facility. Along with the Zoe, batteries are being produced for Volkswagen Group electric vehicles such as the Audi e-tron and Porsche Taycan. LG Chem began mass production of its NCM712 batteries in the first quarter of 2020.

Hyundai Kona EV being sent to global markets
Hyundai has been more quiet about its presence in electric vehicles that fuel cell vehicles. It’s Ioniq Electric was given more attention when it launched in the US in 2016. The company just announced the launch of its new Ioniq brand dedicated to battery electric vehicles, “opening a new chapter as a leader in the era of electrified mobility.” That means it will be marketed more as its own sub-brand focused on all-electric and not just one of its offerings in all-electric, plug-in hybrid, and hybrid variations.

But its Kona EV has been doing pretty well in sales. It started in South Korea and Europe in 2018, with a market debut in the US and Thailand in 2019. In the spring of 2020, Hyundai began production and started delivery of the Kona Electric in Europe at its Hyundai Motor Manufacturing Czech (HMMC) manufacturing plant.

The company rolled out a new EV in China in early 2019, called the Hyundai Encino EV. The two models have small differences in trim, but overall they’re basically the same electric crossover sport utility vehicle.

As for batteries, the company will be going with CATL in China and LG Chem in other markets. Hyundai and LG Chem are in talks about possibly establishing an EV battery manufacturing joint venture in Indonesia, a person familiar with the matter told Reuters in late June.

BMW i3 sticks with Samsung SDI
Samsung SDI, one of South Korea’s top three battery making companies, in November 2019 signed a 10-year contract with BMW Group to supply 2.9 billion euro ($3.2 billion) worth of lithium-ion battery cells to the German automaker and its ambitious EV model launch strategy over the next decade.

The battery maker’s fifth-generation EV batteries are expected to power some of the new 25 environment-friendly vehicles models including 12 all-electric vehicles BMW pledged to roll out by 2025. In 2014, Samsung SDI became the exclusive battery supplier for BMW’s i3 electric car. That year, the two companies expanded their agreement to include developing next-generation materials and EV technology — which has ended up in a wide variety of plug-in vehicles offered under the BMW brand.

Solid-state batteries a big part of the Fisker and VW relationship?
Last year, Fisker Inc., launched its Ocean model, with plans to roll out the $40,000 all-electric SUV in 2021. CEO Henrik Fisker said the solid-state battery that will go into the Ocean can produce 2.5 times the energy density that lithium-ion batteries can, at perhaps a third of the cost. The Volkswagen partnership will be part of it, but there’s likely to be other announcements with automakers and technology suppliers.

The founder is emphasizing that Fisker, Inc., is pursing a different business model than Tesla and many other EV startups have tried. Last month, Fisker Inc,. reached a deal to go public by merging with a special purpose acquisition company (SPAC) backed by Apollo Global Management. Fisker is cutting out the huge capital outlay needed to become a carmaker. The company has been is in talks with Volkswagen to use its modular EV platform and to assemble its vehicles at a VW plant in Europe.

But where is the solid-state battery coming from? Will they be sharing the same supplier partners? Is VW jumping into the solid-state battery world as well? It seems that QuantumScape could be part of it, with VW recently sinking another $200 million in the solid-state battery company.

VW’s relationship with the solid-state battery company goes back to 2012. In 2018, the two companies forged a joint venture to accelerate the development of solid-state battery technology that can be produced at a commercial scale. The German automaker placed $100 million in the initial investment in September 2018. The company hopes to accelerate that work through the recent $200 million investment.

And in other news……….

A California judge ruled yesterday afternoon that Uber and Lyft must classify their drivers as employees, a decision that could affect many gig workers well beyond the two ride-hailing giants. The ruling will be stayed for 10 days, and then a preliminary injunction will take hold. Uber and Lyft say they will be filing emergency appeals during that 10-day window. This comes from a lawsuit filed in May by California Attorney General Xavier Becerra and the city attorneys of Los Angeles, San Francisco, and San Diego. The suit made the case that the drivers were misclassified as independent contractors when they should be employees under the state’s AB5 law that went into effect on January 1st. California later filed a motion for a preliminary injunction that would change the driver classification immediately. Superior Court Judge Ethan Schulman ruled yesterday that Lyft and Uber drivers should be given the same protections and benefits under labor law as other full-time employees of the two companies.

Leading refuse company Republic Services is bringing in fuel cell electric vehicles. The company has agreed to purchase 2,500 of these collection vehicles from Nikola Corp., with the potential for up to 5,000 orders. Republic Services said its the largest truck order ever for its fleet of approximately 16,000 collection vehicles. The order will be contingent on initial testing that’s expected to begin in Arizona and California, with wider-scale testing in 2022 and full deployment by 2023. The collection vehicles are said to have a 150-mile range, up to 720 kilowatt hours of battery capacity, and the ability to collect 1,200 cans with one charge. Nikola’s chief told Wall Street Journal that he expects each vehicle will cost under $500,000.

Waymo and FCA bringing autonomous vehicles over to the fleet side, Aging population growing fast and needing the best in mobility and transportation

Waymo and FCA want commercial AVs: Commercial fleet vehicles may be the key launch pad for autonomous, electric, and shared vehicles of the future with two companies, Waymo and Fiat Chrysler Automobiles, making moves in this direction. Autonomous vehicle leader Waymo is pushing for California to add autonomous delivery vehicles to its allowable vehicles for testing and adoption. The Teamsters union will be fighting it over job losses for truck drivers; but Waymo has been moving in this direction for awhile, starting with a passenger delivery service in Arizona in December. FCA will be partnering with Silicon Valley self-driving car startup Aurora to develop autonomous commercial vehicles. The partners will be using the Aurora Driver platform on Fiat Chrysler commercial vehicles for autonomous driving aimed at Fiat and Ram commercial customers. FCA has been working with Waymo on autonomous Chrysler Pacifica minivans that utilize Waymo’s hardware and software. Crosstown competitors Ford and General Motors are also working on autonomous vehicles that can move either people or goods.

Booming aging population: If you’re looking at social trends that will shape the future of mobility and transportation, it ain’t all about Millennials and GenZers — it’s more about Baby Boomers and the GenXers following close behind. The United Nations predicts that the world’s population of over-64-year olds will double between 2018 and the mid-2040s. As of last year, that age demographic eclipsed the number of people under the age of five for the first time in recorded history. These numbers are based on the assumption that medication and healthcare will continue to improve. Demand will continue to grow in senior-citizen communities and assisted-living facilities, for caregivers and medical professionals, and those providing rides in buses, vans, and cars. Google (and later Waymo) build this into autonomous vehicle test rides years ago. Lyft is working with GoGoGrandparent to offer monitored rides for senior citizens. Start-up company Voyage is bringing self-driving shuttles to large senior-living communities in Florida and California. Amazon Fresh and competitors like Instacart are bringing groceries to the elderly (though that usually needs to be initiated by offspring). Those providing travel services and adventure experiences to customers who don’t have to go back to work are also expected to see much growth in the next few years.

News Briefs:
Climate mayors on EV procurement: Cities devoted to fighting climate change will be making a major announcement next month, June 27, just prior to the launch of the US Conference of Mayors (USCM) Annual Meeting in Honolulu. The Climate Mayors Electric Vehicle (EV) Purchasing Collaborative will give details on its plans to “step up” its commitment to procuring public fleet electric vehicles. During the Climate Mayors Summit on June 27, this press briefing on moves being made in fleet electrification will be led by Honolulu Mayor Kirk Caldwell, Los Angeles Mayor Eric Garcetti, Boston Mayor Marty Walsh, and Knoxville Mayor Madeline Rogero.

Roaming partnership forged: Volkswagen’s Electrify America and ChargePoint have created a roaming partnership to further expand access to electric vehicle charging across the US. The interoperability agreement that will begin later this year will allow drivers to seamlessly charge their EVs on public chargers between both networks using their existing account credentials to start a session, without any additional fees. It also takes away the need to have to create new memberships, registrations, or payment configurations to charge at the other network.

FCA and Renault merger: Fiat Chrysler Automobiles NV and Renault SA may still be looking for ways to resuscitate their collapsed merger plan and secure the approval of the French carmaker’s alliance partner Nissan Motor Co Ltd , according to sources close to the companies. The deal has officially been declared over, but one tactic being discussed is Nissan urging Renault to significantly reduce its 43.4% stake in the Japanese company in return for supporting a FCA-Renault merger. FCA and Renault are blaming the French government, Renault’s largest shareholder, for demanding more time to win Nissan’s backing. FCA is under much pressure to comply with regulations, such as increasingly stringing European Union rules, to honor emissions reductions mandates. Renault’s and Nissan’s electric vehicle offerings would be part of it. It would, in FCA’s words, have “a strong position in transforming technologies, including electrification and autonomous driving.”

For Today: GM and Ford move the electrification revolution a few steps further

A well-known automotive market analyst last year told me that he expects sales of battery electric and plug-in hybrid vehicles to make up 10% to 15% of U.S. new vehicle sales about a decade from now. That will mean that plug-in vehicle sales will have a real impact on manufacturing, marketing, infrastructure, and aftermarket products and services. The days of early adopters have come to an end, and the next phase is beginning – as made evident yesterday by announcements from General Motors and Ford Motor Co.

GM plans to launch 20 new electric vehicles by 2023. Two new all-electric cars will come out in the next 18 months. Whether that’s coming from upcoming fossil fuel bans in several countries, the popularity of Tesla, China’s new energy vehicle market, launching the Chevy Bolt, the emergence of other long-range all-electric vehicles, and a long list of EVs in manufacturer product pipelines, the future is here now.

“General Motors believes in an all-electric future,” said Mark Reuss, GM Product Development, Purchasing and Supply Chain EVP. “Although that future won’t happen overnight, GM is committed to driving increased usage and acceptance of electric vehicles through no-compromise solutions that meet our customers’ needs.”

The automaker is also developing hydrogen fuel cell technology as part of its zero emission vehicle drive. One of these is the Silent Utility Rover Universal Superstructure (SURUS), a four-wheel drive concept vehicle that runs on fuel cells. These provide power to electric motors, making it an ideal ZEV platform for delivery trucks, ambulances, and other applications. Yet EVs will be gaining most of the automaker’s focus and support.

Ford is on track to deliver 13 electrified vehicles over the next five years. Seven have been announced, including a 300-mile range crossover EV that will come out in 2020.

Sherif Marakby, Ford’s head of electrification and autonomous vehicles, said that the automaker will increase the number of all-electric vehicles it will offer, but did not provide details.

Ford is establishing an internal team its calling “Team Edison” to study and develop battery electric cars.

“We see an inflection point in the major markets toward battery electric vehicles,” Marakby said. “We feel it’s important to have a cross-functional team all the way from defining the strategy plans and implementation to advanced marketing.”

Here’s my take on a few trends and developments to watch for:

Battery electric vehicles will likely win out over plug-in hybrids in the next decade. While the Chevy Volt and Toyota Prius Prime will continue to do well, automakers tend to use plug-in hybrid variations of existing models as a way to transition car owners over to plug-in vehicles. EV range will be getting better, and all-electric vehicles are easier to maintain and keep in operation than internal combustion engine vehicles and plug-in hybrids. They use a lot less parts and components and are easier to maintain. Tires and brakes have to be replaced but there isn’t much else to changeover, given that the electric drive train is well made for EVs that are strong in sales.
Tesla is playing a leading role in public perception and experience with the technology. The Tesla Model 3 is expected to play a leading role in mass adoption, but the upcoming Model Y electric crossover will be built at mass scale, too. There will be other models coming out including the semi truck aimed at buyers of heavy-duty commercial vehicles. Tesla’s stock performance continues to stay strong and validates that institutional and individual backers believe in the business model. (As a side note, GM and Ford stock prices did well after announcing strong September sales and serious electrification campaigns.)
German automakers may be just as important as Tesla in moving the product development and sales trend forward. Volkswagen, Daimler, and BMW made big announcements a year ago in the wake of the “Dieselgate” scandal, and with growing pressure from German regulators and from a few other countries. Tesla was taking the lead in the luxury EV side, but an impressive list of pre-orders on the Model 3 opened up the playing field. The product pipeline is covering the bases from Tesla-competitive automakers – electric sedans, SUVs and crossovers, and luxury vehicles.
Car buyers want to see realistic, real-world numbers on per-charge driving range, charging time, fast charging, option and trim levels, resale value forecasts, top speeds, horsepower, and torque. U.S. Environmental Protection Agency range ratings are gaining more confidence than the New European Driving Cycle (NEDC), with the NEDC using a very different cycle analysis and much longer range.
Hydrogen fuel cell vehicles won’t reach mass adoption, with EVs winning out. They won’t be going away, with automakers such as Toyota, GM, Honda, Hyundai, Daimler, and BMW committed to the technology. They’ll probably stay at a low level in passenger vehicle sales with a few of the automakers going over to military and commercial vehicle applications. But the barriers will be hard to cross – having enough fueling stations, the cost of the technology and sticker prices coming way down, and finding broad support and trust in the technology. The typical pump price for fueling with hydrogen isn’t known yet, and concerns are being expressed on how expensive it will be to collect and extract hydrogen from natural gas and other sources; and to deliver it by truck and pipelines to gas stations. The ZEV aspect makes hydrogen fuel cell vehicles very attractive, but where is the hydrogen coming from? And EVs are getting cheaper and better all the time, along with the charging infrastructure.
Countries adopting fossil-fuel bans will likely have to back off those holistic mandates. It’s much more likely to take several more years (another half century?) before ZEV adoption becomes accepted at that level. It will be tied into radical transformation in how we drive and get around town. An integration of autonomous vehicles, mobility services, and electrification will be behind it, but that is going to take decades to meet thorough testing and safety standards, insurance and liability issues, and to gain enough confidence and trust to reach mass scale. I expect that governments will go back to mandating a certain percentage of new vehicle sales meet their mandates; incentive programs will probably have to be deployed in China and other markets.
There’s also the issue of fleet and commercial vehicles used in transport, delivery, and moving employees and customers from Point A to Point B. Fleets are likely to integrate the fuels and technologies – with trucks and buses powered by renewable natural gas and renewable diesel, electrification, and propane and natural gas; and hybrid, plug-in hybrid, and all-electric passenger vehicles used by law enforcement agencies, administrative vehicles, and other functions. Fleet operators make decisions based on economic and environmental factors, along with functionality and ease of use, as do consumers.

For Today: Car Charging Group brings Blink brand name to corporate identity, Lyft doing well enough to expand to 32 more states

Blink Charging Co. new corporate name: Car Charging Group, Inc. is tapping into the Blink electric vehicle charging network’s market identity by changing its corporate name over to Blink Charging Co. The company had taken over the network after founder ECOtality filed for bankruptcy in 2013. Car Charging Group began operating thousands of Blink charging stations, and the software that manages, monitors, and tracks these stations and stores charging data. Blink Charging Co. also started a 1 for 50 reverse stock split, effective two days ago. After a period of 20 business days from then, the company’s stock symbol will be CCGID and will then revert to CCGI. The company’s website has switched over to www.BlinkCharging.com. “Changing the name of the Company to Blink Charging continues our integration efforts and corporate rebranding, which allows us to unify our identity and illustrates the company’s primary products and services,” stated Mike Calise, Blink Charging’s CEO. “The reverse split is also another step in the right direction towards achieving a listing on a national stock exchange and to build additional shareholder value.”

Bosch offering extended range: Global auto supplier Bosch just released e-axle, a new electric axle combining three powertrain components into one unit – that will bring longer range to electric vehicles and hybrids and more torque and speed to these vehicles – and to compact cars, SUVs, and pickups. It’s capable of delivering between 50 and 300 kilowatts. Torque at the axle can cover a range of about 1,000 to 6,000 Newton meters (737 to 4,425 foot-pounds). EVs will be able to travel further on each charge, and they won’t have to draw more power from the battery with the new e-axle system in place. It’s being tested now with a few Bosch customers, and the supplier company says it will go into mass production starting in 2019. The German supplier says it has already provided components to over 500,000 hybrids and EVs out on roads.

Lift spreading across country: Ride-hailing company Lyft is making a big move in its U.S. presence, expanding from eight states up to 40. The Uber competitor has been able to see growth in riders and revenue and recent years, and can now tap into chaos that the global ride-hailing giant entered into earlier this year. Lyft has been able to bring over a lot of customers and drivers from Lyft. An upgraded smartphone app has helped, along with a new marketing campaign that’s helping Lyft grow from serving 160 more cities for a total of about 350. Lyft is an ideal situation, with its General Motors partnership and recent deals with other companies on autonomous vehicle test projects. Uber’s excessive market valuation and ability to raise about $14 billion in private equity since its inception is causing a huge shakeup as investors want to see transparent, professional management of the company. Uber this week hired Expedia CEO Dara Khosrowshahi to take the place of ousted and controversial founder Travis Kalanick. The new CEO is also known for being outspoken, and is expected to bring the company forward to an initial public offering within 18 to 36 months. Lyft co-founders Logan Green and John Zimmer work on keeping the company simple and direct. They say they haven’t done beyond asking employees and drivers to make sure passengers are treated like guests at a fine hotel.

For Today: ChargePoint adding 9,800 charging spots, Germany cracking down on diesel

ChargePoint buys GE network: ChargePoint will be adding 9,800 charging spots to its network through acquisition of GE’s EV charging network. That’s made up of more than 1,800 commercial and about 8,000 resident charging spots to the ChargePoint network. GE’s existing clients and drivers will be served through maintenance of GE’s existing software and commercial charging stations. GE customers with questions about the transition to ChargePoint can learn more at this site. GE played a visible role in setting up the U.S. charging infrastructure years ago, and would be typically seen with a strong presence at electric transportation industry conferences.

Most powerful solar: Los Angeles just had the world’s most powerful solar energy project completed, according to solar developer PermaCity and city officials. The Westmont Solar Energy Project, located in LA’s port town of San Pedro, has more than 50,000 solar panels covering 50 acres of roof space and generating up to 16.4 megawatts of electricity. That’s enough to provide power to 5,000 single family homes. It comes in second after Apple’s headquarters in Cupertino, Calif., in terms of size. As for power, it offers the world’s most powerful solar source for electricity announcement.

Germany cracking down on diesel emissions and reporting: Germany will be adopting a national plan to reduce pollution from diesel vehicles, and to establish a new organization for making vehicle emissions testing more accurate. National elections will be taking place on September 24, two years after the Volkswagen “dirty diesel” scandal was reported by the U.S. Environmental Protection Agency. Germany, which plays a leading role in the European Union and is the home base for VW, has been taking a tough stance with automakers and their diesel vehicles. Diesel cars have been very popular in Germany, with VW, Audi, Mercedes, and BMW offering a long list of high-performance diesel cars; many of which will be going away. On Monday, the transport ministry was urging automakers to upgrade to realistic software on up to 12 million diesel vehicles in Germany; on Tuesday, that ministry announced creation of a “national diesel forum” to work with automakers and regional governments on emissions cuts.

This Week’s Top 10: California utilities request approval for major charging projects, Tesla not facing recalls over Autopilot crash

by Jon LeSage, editor and publisher, Green Auto Market

Here’s my take on the 10 most significant and interesting occurrences during the past week…….

Utilities supporting charging: California’s three large investor-owned utilities have asked the California Public Utilities Commission to support more than $1 billion in funding for electric vehicle charging stations. Southern California Edison asked for permission to collect $570 million from customers over five years to pay for equipment installations supporting about 1,800 charging stations for electric trucks and other projects. Pacific Gas & Electric requested $253 million to meet several objectives including charging systems for electric buses and delivery trucks. San Diego Gas & Electric applied for $246 million for installation of up to 90,000 charging stations at single family homes in the utility’s service area; and other projects, including installing up to 45 charging ports to enable electrification of about 90 new pieces of ground support equipment at San Diego International Airport. The utilities intend to install thousands of chargers at homes, workplaces, airports, and port locations. It ties into the state’s goal of cutting emissions to 40 percent below 1990 levels by 2030.
No recall for Tesla: Tesla Motors was cleared by the National Highway Traffic Safety Administration following an investigation over the fatal crash in Florida last May where the driver had been using Tesla’s Autopilot semi-autonomous system. Investigators didn’t find a defect in Autopilot requiring a safety recall for Model S and Model X owners who have purchased that option. NHTSA analyzed changes made to the system since the crash, including how the crash rate dropped by nearly 40% for the Autosteer component, which can safely change lanes, became available. The crash rates in the study compared airbag deployment crashes before and after Autosteer installation.
Wireless charging: Automakers, Tier 1 suppliers, and technology companies have reached agreement on the upcoming SAE Recommended Practice Wireless Power Transfer and automated parking alignment and charging of electric vehicles. Taskforce members have agreed on specifications for the SAE J2954 Test Stations; automakers will use that standard as a basis to develop their wireless charging systems, and to make sure they can interoperate with charging systems and vehicles sold by other automakers. The meeting held in Ingolstadt, Germany, is expected to set the foundation for moving wireless charging forward. Several automakers, suppliers, and technology providers see wireless charging being pivotal in helping move forward both electrified and autonomous vehicles.
ZEV rules in Quebec: Automakers are upset that the Quebec province has followed a mandate similar to California and nine other states’ zero emission vehicle policy. Starting with the 2018 model year, 3.5% of all vehicles sold in the province will need to be all-electric, plug-in hybrid, or hydrogen fuel cell vehicles. That bumps up to 15.5% for 2025 models. Companies that don’t hit the marks will have to buy credits from automakers that do. Penalties for failing to comply haven’t been spelled out yet. The legislation, which was passed last October, should be delayed, according to David Adams, president of the Global Automakers of Canada. Electric vehicle sales make up less than 1% of new vehicle sales in Quebec and 0.5% of all new vehicle sales across Canada.
EPA chief nominee: Scott Pruitt, the Oklahoma attorney general being considered as the new EPA administrator, is working at taking a more civil approach in his new role (which still needs Senate approval). He’s pledged to be a good listener and lead the agency “with civility,” especially when dealing with controversial issues like climate change and the EPA’s decision on the midterm review of 2025 mpg standards. He said the EPA’s proposal to finalize light-vehicle greenhouse-gas standards for 2022-25 model-year vehicles just 14 days after the comment period expired was a bit rushed and “merits review.” In related news, the EPA was sent a notice by the new administration temporarily halting all contracts, grants and interagency agreements pending a review, according to sources. The EPA’s Office of Administration and Resources Management ordering the freeze on Monday. It’s not known yet whether this move will have an effect on the auto industry.
Elio Motors reports losses in SEC filing: Elio Motors has been taking losses in the past year, which has been investigated by a news channel in its corporate hometown. Local news channel KTBS in Shreveport, La., found in a Securities and Exchange Commission filing that the three-wheel carmaker had $101,317 in cash and about $123.2 million in accumulated deficit as of Sept. 30, 2016. The document also reported having about $6.8 million in cash and a deficit of about $2.3 million as of Dec. 31, 2015. The news channel also found that the company has once again postponed the launch of its affordable, 84 mpg three-wheeler, this time until 2018.
Renault-Nissan top spot: Renault-Nissan has sold more than 400,000 electric cars globally and has plans for further investments to maintain its market lead, CEO Carlos Ghosn told Reuters on the sidelines of the World Economic Forum in Davos, Switzerland. “We are going to increase investment, we are going to have lot of new cars coming, better batteries, better performance, lower prices,” he said. Nissan’s Leaf opened up the auto industry to a mass produced all-electric vehicle, which was followed two years later by alliance partner Renault’s Zoe, a hatchback subcompact.
CARB on midterm review: The California Air Resource Board last week published a 667-page Midterm Review of Advanced Clean Cars Program report. It finds that the state’s original intentions are being met, and the elements are in place to continue making advancements well beyond the 2025 target. The CARB staff, “recommends that California make a major push now to develop new post-2025 standards while working with automakers, federal regulators and partner states to further develop the market for electric cars,” according to a statement. The report also addressed the state’s zero emission vehicle policy, stating that more support is needed to grow the charging infrastructure. The agency will likely be pleased with proposals submitted this week by utilities to grow the state’s infrastructure.
Ford PHEV vans: Ford has established a 12-month trial with the Transport for London agency’s fleet. Ford will provide 20 plug-in hybrid electric vehicle Transit Custom vans that the automaker says improves fleet productivity while reducing emissions. Scheduled to start in the fall, the test project will receive 4.7 million pounds ($5.9 million) in UK government funding. Ford and Transport for London will invite commercial fleets into the trial project.
Infiniti performance EV: Infiniti is getting ready to roll out its very first electric car, though the launch date and other details have yet to come out. In 2012, the Nissan luxury division showed the LE electric concept car that was supposed to roll out in two years, but has yet to show up. Infiniti boss Roland Kreuger says he’s driven the prototype of this electric car as it’s “very good.” Krueger does however note that this is an “early” prototype, meaning its years away from production. The company will tapping into Nissan’s electric car technology, but will build a dedicated platform for the Infiniti model. Autocar and InsideEVs did a bit of speculating on it: it could be a 2020 Infiniti performance battery electric vehicle with its own platform packed full of Nissan’s EV tech.

This Week’s Top 10: More autonomous features in Tesla’s Autopilot, More on VW scandal

by Jon LeSage, editor and publisher, Green Auto Market

Here’s my take on the 10 most significant and interesting occurrences during the past week…….

Lane changing and self-parking features in Autopilot: Tesla Motors is offering car shoppers a leap forward in autonomous vehicle technology – an option with automated lane changing and self-parking features. As part of Tesla’s new Version 7.0 software package in the Model S, Autopilot will be transmitted to cars in the U.S. over the next week, followed by Europe and Asia. Tesla’s new Model X sport utility vehicle will also offer Version 7.0 and Autopilot. Customers must pay a one-time fee of $2,500 to activate the self-driving software when they buy a car, or $3,000 to activate the feature after delivery. The software update uses cameras, radar, ultrasonic sensors, and data to steer down the highway, change lanes, and adjust speed in response to traffic. The driver can follow a lane on the highway and change lanes using the turn signal. The 7.0 software and Autopilot can deliver parallel parking that detects an open parking space and takes control if the driver asks for the car to park itself.
More on VW scandal: Volkswagen continues to be dragged into a quagmire over its TDI diesel models. Three people “familiar with the matter” told Reuters that the automaker made several versions its “defeat device” software to falsify diesel emission tests. Over seven years, VW altered its software for four engine types…… VW will be pulling out of the diesel market, and its competitor General Motors said it will be ramping up its diesel efforts. GM’s Mark Reuss said the upcoming Chevrolet Cruze Diesel and the diesel program for Cadillac are still in the works……. Paramount Pictures and Leonardo DiCaprio’s production company have acquired movie rights to a book proposal by New York Times journalist Jack Ewing about the clean diesel scandal. They’re still in the early stage of production, so the movie won’t be coming out anytime soon.…….. VW plans on bringing more plug-in hybrids and battery electric vehicles to market to shift focus away from its diesel technology. The company is confident it can create components for EVs with ranges as far as 310 miles; that strategy may include redesigning the flagship Phaeton sedan as a battery electric model.
Award given at LA Auto Show: The annual Green Car of the Year Award will be named next month at the LA Auto Show. Here are the five 2016 model year finalists: Audi A3 Sportback e-tron: The plug-in hybrid hatchback starts at $37,900 and goes 19 miles on electricity alone through its 8.8 kWh lithium-ion battery. Chevrolet Volt: The revamped Volt has a 20% larger battery with 53 miles per charge and 420 total miles of cruising available. Improved handling and acceleration make it fun to drive. Honda Civic: Honda thinks EPA estimates, which have yet to be released, will be over 40 mpg combined without electrification. Coupe and five-door hatchback variants are coming, and it’s the first Civic to feature a turbocharged engine. Hyundai Sonata: It’s available with gasoline, hybrid-electric, and plug-in powertrains. The plug-in should achieve 24 miles on just battery power, and the hybrid gets about 43 mpg on the highway. Toyota Prius: A smaller battery gives offers more space to store cargo, and Toyota predicts the new Prius will achieve 10% greater mileage than before.
Prius upgrades: Toyota is providing details on the all-new 2016 Prius, launched at a Las Vegas event about five weeks ago. Buyers can choose either its conventional nickel-metal hydride batteries or a more advanced lithium-ion battery pack. Toyota says the drivetrain is more efficient – improved aerodynamics, weight-saving measures, and a re-engineered powertrain, should bring a 10% fuel economy improvement. The new Prius is being launched during a time when the long-anticipated Mirai hydrogen fuel cell car comes the U.S. In Tokyo last week, Senior Managing Officer Kiyotaka Ise said during an environmental forum that the global automaker plan to stop manufacturing traditional gasoline engine vehicles by 2050. Toyota wants a 90% cut in carbon dioxide emissions from new vehicles by 2050, compared with 2010 levels. That will come from hydrogen fuel cell vehicles, hybrids, and electric cars.
HorseFly electric drone: The Workhorse battery electric “HorseFly” package delivery drone has won U.S. Federal Aviation Administration authorization for test flights. It’s been designed to work in tandem with Workhorse battery electric delivery trucks, reducing driver workload. Testing has been granted at the Ohio/Indiana UAS Center and Test Complex.
Drive the Dream EV event: Last week, the California Plug-In Electric Vehicle Collaborative, Governor Jerry Brown and a group of more than 40 California leaders met at Drive the Dream 2015. The group announced new initiatives aimed at accelerating the continued adoption of plug-in electric vehicles and workplace charging in the state. Announcements to deploy more electric vehicles and charging stations were made by the U.S. Department of the Navy, Honda, San Diego Gas and Electric, NBCUniversal, PG&E, Coca-Cola Co., Los Angeles Department of Water and Power, Ford, Southern California Edison, NRG, CBRE, and Vision Fleet.
Honda charging stations: American Honda Motor Co. is adding 120 new electric vehicle (EV) chargers at its Torrance, Calif., headquarters. The new chargers will be installed in two phases, the first of which has already begun. Ultimately, Honda estimates that the chargers will enable hundreds of associates to use an EV for commuting to work.
Volvo electric targets: Volvo is developing its first all-electric car and broadening its range of plug-in hybrid vehicles, and expects electrified models will account for 10% of its global sales by 2020. The automaker will bring plug-in hybrid technology to its 40-series vehicles; and will offer the full-electric vehicle by 2019.
Westport and Volvo Group Deal: Westport Innovations has entered into new agreements with Volvo Group for the development, commercial launch and supply of Westport High Pressure Direct Injection (HPDI) 2.0 technology in its heavy-duty trucks over the next several years. Westport says that HPDI 2.0 continues to be the only natural gas system that can offer “same as diesel” horsepower, torque, transient response, engine braking power and fuel economy. It also provides up to 20% reduction in greenhouse gas emissions compared to equivalent diesel engines.
Investing in EV technology: Pacific Gas and Electric Company (PG&E) plans to invest one-third of its annual fleet purchases in electric vehicles and plug-in hybrid vehicles over the next five years, totaling more than $100 million. PG&E operates approximately 1,400 plug-in electric and electric hybrid vehicles, one of the largest fleets of plug-ins in the nation. The $100 million investment will add more than 750 plug-in electric units to PG&E’s fleet of over 14,000 vehicles.

Tesla Energy seems to be the next logical step for the Silicon Valley company

With its new energy storage division (called Tesla Energy), Tesla Motors continues to build on a strategy that’s working for other Silicon Valley neighbors such as Google and Apple. That would be: move into the next logical technology marketplace. Advanced batteries may produce more revenue and profit than electric cars for Tesla in the next few years – and they’ll contribute to Tesla CEO Elon Musk’s vision of reducing dependence on fossil fuels and supporting growth in renewable energy.

Along with its electric drive system, Tesla’s greatest strength is batteries – making its $5 billion investment in the Gigafactory potentially more than worthwhile; the company expects the Nevada factory to reach full capacity by 2020 and make more lithium-ion batteries than were produced worldwide in 2013. Tesla Energy will be ready to bring Tesla batteries to homes, business, and utilities to store energy to better manage power demand, provide backup power, and increase grid resilience – with much of it coming from solar power.

Called the Tesla Powerwall, it includes Tesla’s lithium-ion battery pack, liquid thermal control system, and software that receives dispatch commands from a solar inverter. Tesla Powerwall will be built into a building’s wall and will be integrated with the local power grid so that customers can draw energy from their own reserve. Benefits will include cost savings through load shifting during low rate periods; storing surplus solar energy; increasing the capacity for using more solar; and providing backup energy during grid outages.

It’s available in 10kWh, optimized for backup applications, or 7kWh, optimized for daily use applications. Tesla’s selling price to installers is $3,500 for 10kWh and $3,000 for 7kWh. Those prices exclude inverters and installation costs. The company says that deliveries will begin in the late summer of 2015.

Tesla has been testing out energy storage projects with some big-name partners including Amazon and Target. Amazon’s cloud computing division, Amazon Web Services (AWS), has been working closely with Tesla for the past year on high-capacity battery technology in data center applications. Target has partnered with Tesla on a pilot test at select Target stores to incorporate Tesla Energy Storage as part of its energy strategy. Tesla has also been supplying batteries to Walmart through pilot projects and a supply agreement with SolarCity Corp. Jackson Family Wines is using Tesla’s stationary energy storage solution in four areas that account for the most consumption in its winemaking process: refrigeration/cooling, lighting, compressed air, and process water treatment.

Utilities and solar companies are also working with Tesla on energy storage systems for meeting the next wave of energy demands. Southern California Edison has developed the nation’s largest battery storage system and has contracts in place for an additional 264 megawatts of storage, including projects using Tesla batteries.

Tesla has “channel partners” in place for producing the Powerwall. TreeHouse, a sustainable home improvement store, is working with Tesla to sell the Powerwall home battery. SolarEdge, a leader in the global photovoltaic (PV) inverter market, has a deal with Tesla for joint development of a PV storage and backup power solution for the worldwide residential solar market. Vermont-based renewable energy company Green Mountain Power and Tesla will offer Vermont residents a way to use less energy and rely on the grid as a backup system.

Tesla CEO Elon Musk does have a few things in common with executives at neighboring Silicon Valley giants – with one of them being expanding into the next logical technology marketplace. He serves as chairman of SolarCity, the largest solar power company in the US (and one started up by Musk’s cousins); he leads innovative space travel company, SpaceX (and its Hyperloop high-speed rail project); the Gigafactory, which is still being developed in Nevada; and the Tesla Motors electric carmaking company, which holds the unique position of breaking into the tough auto manufacturing sector – and surviving.

The big question will be whether all of it will work. The massive investment in Tesla since startup has come from private equity shareholders, the stock market, corporate partners (such as Panasonic on the battery side and Daimler on the car manufacturing side), a US Department of Energy loan, and personal investments from Musk from his PayPal startup profits and from other Tesla executives. Tesla Energy will require significant investments in the next few years.

Competition in the energy storage market will be fierce. Coda Automotive may not be around anymore in the electric vehicle space, but Coda Energy does have several clients at commercial and industrial sites. Schneider Electric is known for its electric vehicle charging systems, but has a significant presence in the energy storage market. Major solar companies are entering the storage market, along with commercial building suppliers and large battery manufacturers. It may come together for Tesla, and it’s possible that advanced batteries and energy storage could make for the lion’s share of its revenue in the next 10 years.

Breaking through range anxiety and other EV stumbling blocks

For those of you championing the benefits of plug-in electric vehicles, here’s a few points you may want to mention…..

Nissan is sharing real-world experience from Leaf owners on its website. Those interested can submit questions that will be answered by Leaf owners who drive the electric cars every day. Range anxiety continues to be the leading concern; owners say that the Leaf’s EPA rating of 84 miles on a charge is more than adequate for suburban or urban commuting. Two Leaf owners did run out of energy while driving – one of them was stranded by a closed charging station and the other admitted not having learned how to read the car’s range meter.
US electric vehicle owners saved themselves $100 million last year by not having to buy gasoline. The Union of Concerned Scientists said that 160,000 Americans saved that much by not having to go to gas stations and buy 45 million gallons of gasoline last year. Carbon reduction is another point to make; for example, California EV drivers were able to reduce emissions of carbon dioxide by 140,000 tons last year.
A new report from the World Health Organization (WHO) estimates one of every eight deaths around the world can be traced back to exposure to air pollution. WHO estimates that in 2012 about seven million people died as a result of air pollution exposure. Government agencies around the world are expecting EVs (along with other zero emission vehicles such as plug-in hybrids and hydrogen fuel cell vehicles) to play a significant role in reducing air pollution and greenhouse gas emissions.
As I’ve discovered talking to stakeholders in alternative fuel vehicles, being able to effectively answer questions from consumers, fleets, company executives, and regulatory agencies, is essential for growth in adoption of EVs and other fuels and technologies. Education and public awareness programs are very much needed. Some of the issues that typically come up during conversations include:

Where the electricity comes from – coal versus cleaner energy.
Lifecycle ownership costs, price comparisons to similar gasoline-engine cars, maintenance, and resale values.
Safety issues for EV owners and first responders in the event of a crash.
Where the EV battery technology is going – becoming lighter, longer range, and less expensive.
Charging infrastructure – how many charging stations are being installed, how available and reliable are the chargers, and the cost of charging.
What will it take for fast chargers to become more widely available.

AeroVironment and KnowWhatYouDrive educate EV car shoppers

Education and accessible, clear information is needed out there to get past the stumbling block that holds consumers back from owning an electric vehicle. If you take a look at a new educational website for electric vehicle (EV) shoppers, you’ll find answers to frequently asked questions:

What’s the difference between EVs, plug-in hybrids, and hybrids?
Why lithium ion batteries?
What do you get out of it? Why make the investment?
What’s the latest on charging technologies?
How long does it take to charge and how far do you travel?

AeroVironment is working with Saginaw, Mich.-based KnowWhatYouDrive on an educational initiative to help consumers take the plunge and purchase an EV and a home charging port. The free online course at AVEV101.com walks through all of the questions that typically come up for car shoppers – or those with some interest in owning an EV. Details are presented on the types of available charging stations, charging time, and how the installation process works. You can test your electric vehicle IQ and instantly earn $25, $50, or $100 coupon codes for an electric vehicle charging station and installation.

“Education is one of the key factors that will help speed EV adoption,” said Wahid Nawabi, senior vice president and general manager of AeroVironment’s Efficient Energy Systems business segment. Doug Taylor, founder of KnowWhatYouDrive, says that it can be a daunting task with all of the EVs on the market now through Ford, Nissan, Fiat, and other OEMs. KnowWhatYouDrive works with charging station supplier Eaton on its website, and offers a discount program for EV charging stations.

AeroVironment has been committed to making the EV ownership and charging experience more accessible to consumers. It launched a dealer program last year offering a turnkey residential charging package. Consumers can purchase the EV and the charger in combination at the time of sale and build it into the financing. The home installation process is built into the transaction so that it can take place in a faster, more seamless way than it typically happens.