Better Place Signs Contract In China

Bertel Schmitt
by Bertel Schmitt

Things have been a little quiet around Better Place and their battery switching solution. Everybody is waiting for their Denmark and Israel projects to finally take off. The promised land of EVs of course is China: A huge population, a large untapped car market, and a government that gets nervous when thinking about long and perilous supply lines of foreign oil. The Chinese government demands EVs from its automakers, and just about each had a prototype or more at the Shanghai Auto Show that had a plug and a cord. Just don’t ask when you can buy one.

Better Place now announced a strategic agreement with China Southern Power Grid Co. (CSG), the world’s eighth largest utility company. First step is to establish a battery switch station and joint education center in the southern city of Guangzhou before the end of the year, while a joint-venture partnership is being formalized. The Guangzhou city government will encourage local car manufacturers, such as Guangzhou Automobile Industry Group, to produce electric cars with switchable batteries.

China Southern Grid Chairman Zhao Jianguo believes that “the battery-switch model may become mainstream in China.”

At the “2011 International Forum on Electric Vehicle Pilot City an Industry Development” in Shanghai, an executive of a Shenzhen battery maker warned about fast charging. It should only by used in emergency situations, because it might kill the battery. Also, fast charging puts high demands on the grid. Better Place sees a trend towards battery switching and slow charging that is spearheaded by utility companies and the Chinese government, says Better Place spokesman John Proctor. At the conference, State Grid said they would build over 2,300 switching sites by 2015.

With the Better Place business model, you lease the battery and subscribe to a number of annual miles, just like in a cell phone plan.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • SCE to AUX SCE to AUX on Apr 28, 2011

    I wonder how well this works when the undercarriage is packed with snow, dirt, and saltwater from the winter roads. This company's idea has been a topic here before, and it's fraught with problematic details that need to be worked out.

  • Skierpage Skierpage on Sep 24, 2011

    Since some BP fanboy or PR flack used your article as a Wikipedia citation, please note this correction: "State Grid plans to build 2,351 electric-charging and battery-swap stations with 220,000 charging poles". But they did NOT say how may would be battery-swap stations; instead the director of the State Grid smart grid research center commented "The construction of a large-scale charging station costs 20 to 30 million yuan ($3.05-4.57 million) and a small-scale one costs less than 10 million yuan, but it costs more than 100 million yuan to build a battery-swap station." http://www.sgeri.sgcc.com.cn/english/Center/Viewpoints/98003.shtml

  • KOKing I owned a Paul Bracq-penned BMW E24 some time ago, and I recently started considering getting Sacco's contemporary, the W124 coupe.
  • Bob The answer is partially that stupid manufacturers stopped producing desirable PHEVs.I bought my older kid a beautiful 2011 Volt, #584 off the assembly line and #000007 for HOV exemption in MD. We love the car. It was clearly an old guy's car, and his kids took away his license.It's a perfect car for a high school kid, really. 35 miles battery range gets her to high school, job, practice, and all her friend's houses with a trickle charge from the 120V outlet. In one year (~7k miles), I have put about 10 gallons of gas in her car, and most of that was for the required VA emissions check minimum engine runtime.But -- most importantly -- that gas tank will let her make the 300-mile trip to college in one shot so that when she is allowed to bring her car on campus, she will actually get there!I'm so impressed with the drivetrain that I have active price alerts for the Cadillac CT6 2.0e PHEV on about 12 different marketplaces to replace my BMW. Would I actually trade in my 3GT for a CT6? Well, it depends on what broke in German that week....
  • ToolGuy Different vehicle of mine: A truck. 'Example' driving pattern: 3/3/4 miles. 9/12/12/9 miles. 1/1/3/3 miles. 5/5 miles. Call that a 'typical' week. Would I ever replace the ICE powertrain in that truck? No, not now. Would I ever convert that truck to EV? Yes, very possibly. Would I ever convert it to a hybrid or PHEV? No, that would be goofy and pointless. 🙂
  • ChristianWimmer Took my ‘89 500SL R129 out for a spin in his honor (not a recent photo).Other great Mercedes’ designers were Friedrich Geiger, who styled the 1930s 500K/540K Roadsters and my favorite S-Class - the W116 - among others. Paul Bracq is also a legend.RIP, Bruno.
  • ToolGuy Currently my drives tend to be either extra short or fairly long. (We'll pick that vehicle over there and figure in the last month, 5 miles round trip 3 times a week, plus 1,000 miles round trip once.) The short trips are torture for the internal combustion powertrain, the long trips are (relative) torture for my wallet. There is no possible way that the math works to justify an 'upgrade' to a more efficient ICE, or an EV, or a hybrid, or a PHEV. Plus my long trips tend to include (very) out of the way places. One day the math will work and the range will work and the infrastructure will work (if the range works) and it will work in favor of a straight EV (purchased used). At that point the short trips won't be torture for the EV components and the long trips shouldn't hurt my wallet. What we will have at that point is the steady drip-drip-drip of long-term battery degradation. (I always pictured myself buying generic modular replacement cells at Harbor Freight or its future equivalent, but who knows if that will be possible). The other option that would almost possibly work math-wise would be to lease a new EV at some future point (but the payment would need to be really right). TL;DR: ICE now, EV later, Hybrid maybe, PHEV probably never.
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