E&E News: Former software executive Shai Agassi, who worked at SAP AG until last spring, has raised $200 million to try making electric cars more practical and less expensive than those fueled by gasoline.
Two huge limitations of electric vehicles are their cost and their need for frequent battery recharging.
While some carmakers are trying to develop technology that would power cars for longer distances, like 400 miles, Agassi thinks using smaller batteries and developing stations where drivers can purchase recharged batteries through a subscription service would be more practical.
Under his scheme, automakers would sell buyers the electric car, but not the battery.
“The thinking has been, the battery is part of the car,” Agassi said. “Actually the battery is like gasoline.”
Agassi said his company would buy and own the batteries and set up a network of charging sites and service centers where old batteries could be taken out and recharged and new ones could be inserted. He believes the system could make electric cars much cheaper than they currently are (Vauhini Vara, Wall Street Journal [subscription required]).
Agassi’s new company is known as Better Place. It receievd $100 million from Israel Corp., a large Israeli industrial holding company, and lesser amounts from Silicon Valley venture capital firm Vantage Point Venture Partners, a large New York investment bank and angel investors (Steve Hamm, Business Week [subscription required]).
Democrats tell unions they will preserve small car legislation
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) has secured commitments from 13 key Democratic senators to preserve legislation that would force automakers to build small cars in the United States.
The UAW backs the House bill that would require automakers to manufacture small vehicles in the United States and has more lenient measures for fuel efficiency progress. The House bill would set a standard of 32 miles-per-gallon to 35 mpg by 2022 with separate standards for cars and trucks. A Senate bill does not require that small cars be built in the United States and has stricter fuel-economy standards: 35 mpg by 2020, combining cars and trucks under one measurement system.
Presidential candidates Hillary Rodham Clinton (D-N.Y.) and Barack Obama (D-Ill.) sent a letter with other Democratic senators to Senate Majority Leader Harry Reid (D-Nev.) last week saying they support forcing automakers to build small cars in the United States.
House and Senate staffers said Congress could resume energy bill negotiations this week (Justin Hyde, Detroit Free Press). (All cites Oct. 29). — KB
