Chinese Investors Keeping US EV Startups Afloat
Originally published on Sustainnovate.
Supported by the Chinese government’s generous electric vehicle (EV) incentives, interest in the country’s market has been growing rapidly in recent years.
As a result, Chinese investors have been showing increased interest in US-based EV companies and startups — sometimes to the point of being all that’s keeping them alive, according to the Chinese auto-industry expert Alysha Webb, writing for Automotive News (h/t Green Car Reports).
A case in point would be the Atlanta–based company Wheego Electric Cars — a maker of “neighborhood-sized” EVs. The company was on the lookout for needed funds back in 2013 and subsequently made a deal with the Chinese firm GSR Ventures — following which, the company now sells the vast majority of its EVs in the Chinese market, owing to a stipulation to focus on the market that came with the funding.
Another good example is Smith Electric Vehicles — a manufacturer of commercial electric vans. Following a suspension of activities in 2014 owing to financial issues, the company got $20 million and then a further $15 million from the Hong Kong–listed FDG Electric Vehicles, with the creation of a joint-venture dubbed Prevok accompanying the investments.
The joint venture is now working to develop an electric van for manufacture and sale in China. Plans do call for the van and manufacture to also expand into the US market as well, though.
An interesting situation, and, until incentive levels similar to those in China are unveiled in the US, one that is likely to continue. A change could be in the offing, though, once EV battery production costs come down enough. However, considering that there are likely to be supply constraint issues for some time, perhaps not.
Image via wheego
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The issue of limited range of electric vehicle will continue to dog the EVs. Better would be to simultaneously focus on replaceable/interchangeable batteries and a chain of battery stations to provide fully charged replacements within a short time of say 10 minutes. With some genuine support from government and power utilities, EVs would gain acceptance once the users of EVs are assured of support with replacement battery to care of the run-outs.
We seem to be between 3 and 5 years from EV purchase price parity with ICEVs. That’s for a 200+ mile range EV. With rapid charging such as Tesla provides there’s no need for battery swapping.
Battery prices are dropping very rapidly.
Big Oil is going to make sure that any pro-EV motions or anything that threatens their deep pockets are not going to pass.
Big Oil is getting smaller. Their budgets are getting smaller. I’m not sure how it will play out.
I wonder what the Koch brother’s net worth is, these days.
Could be getting closer to a tipping point in USA/EU on climate. When that happens a real carbon fee/dividend system becomes likely. Which would move EVs, RE, efficiency forward much faster.
It is not just the question of price parity, but have a compromise on opportunities and threats (the O&T of SWOT) of EVs.
With gas prices under $ 3 and electricity charges at over
15 cents a KWh, EVs have stopped giving the benefit of fuel cost. But their environmental control benefits with zero tail pipe emission remains the only silver line.
Issues of high initial cost and limited range of EVs can be taken care of by providing a battery good enough to take care of routine commute and occasional travel over a longer distance may be taken care of with the suggested replacement service.
Electricity is not over 15 cents in the US. Average US electricity prices are 12.36 cents per kWh. Most EV charging is done during late night off peak times when electricity is less expensive.
While the average retail cost of electricity in California is 17.30c/kwh customers on the PG&E grid (Northern California) can charge their EVs for 9c/kWh.
$3/gallon with a 50 mpg hybrid = 6 cents per mile. Plus oil changes.
9c/kWh what a 0.3 kWh/mile EV = 2.7 cents per mile. Plus smiles.
Good that debate is going on as it may atleast infuse awareness among the users of cars whether it is on gas or electricity.
The cost of electricity was adopted from the some site displaying the rate for night charging by Edison Soutern California. May these be different from those for north or the old ones. Never mind, one can always rework the techno-economics as per the prevailing rates.
Regarding the mpg, the mpg of 50 is the combined and is 40 for travel on gas alone and this is what to be compared with.
Still the very issue of limited range of EVs will remain and my very first comment suggesting for interchangeable batteries will find acceptance as it will not only reduce the initial cost of the vehicle but also impart the much needed flexibility and at the same time will obviate the need to carry the burden of a longer range battery all the time when you need that range only occasionally.
Battery swapping would almost certainly make it more expensive to drive an EV.
Someone would have to own the batteries, including enough in order to be able to swap out with whatever car drove in. And there would have to be a physical space for swapping, along with equipment and staff. All those expenses and whoever owned the swapping stuff would expect to make a profit.
We’re rapidly moving to inexpensive batteries. Pack enough in a car to drive 200 – 250 miles. Done.
Price of energy is a major issue. In Germany energy prices are typical 25-30 c/kwh. For big customers definitely less. If you use self-generated renewable energy, the price can easily drop below 12 c/kwh. On the other hand the prices of fossil fuels are incredible low.
If a provider of urban logistics goes the easy way, the use of BEV is not attractive. If the company chooses the green way producing their own power by PV, the operating costs of a BEV fleet is 15 % cheaper compared to diesel trucks.
Due to this reason and the non-availability of BEV trucks produced by Mercedes, Volvo, … we have now 6 successful startups in Central Europe offering BEV up to 24 tons.
Ps. Smith EV trucks were quite unreliable in our projects.
Price of energy is a major issue. In Germany energy prices are typical 25-30 c/kwh. For big customers definitely less. If you use self-generated renewable energy, the price can easily drop below 12 c/kwh. On the other hand the prices of fossil fuels are incredible low.
If a provider of urban logistics goes the easy way, the use of BEV is not attractive. If the company chooses the green way producing their own power by PV, the operating costs of a BEV fleet is 15 % cheaper compared to diesel trucks.
Due to this reason and the non-availability of BEV trucks produced by Mercedes, Volvo, … we have now 6 successful startups in Central Europe offering BEV up to 24 tons.
Ps. Smith EV trucks were quite unreliable in our projects.