GE GETS INTO BATTERY RACE

In the same week, General Electric, the second biggest company in the U.S., announced it was making sizable investments in Th!nk, the Norwegian electric car company, and A123 Systems, a Boston battery-maker.

At a California Institute of Technology presentation in Februrary, Massachusetts Institute of Technology Professor and pre-eminent battery expert Yet-Ming Chiang indicated the coming electric vehicle (EV)/plug-in hybrid electric vehicle (PHEV) auto transportation revolution will be powered by the lithium-ion battery.

GE seems to see the same transportation revolution coming and to have come to the same conclusion about the kind of battery that will power it. Their investment in Th!nk gets them into the EV/PHEV market ahead of the big U.S. automakers and their investment in A123 Systems gives them a share of the leader in lithium-ion batteries.

The Toyota Prius, the breakthrough hybrid gas-electric vehicle (HEV), presently uses a nickel-metal hydride battery. Lithium-ion batteries, originally used in laptop computers and other hand-held electronics, carry 2 to 3 times the power and life in the same volume and are expected to make plug-in driving practical.

It looks like GE is going to get out in the lead in this new transportation area just like it got ahead of the wind turbine market and became one of the leaders in New Energy.

A123 Systems is making the lithium-ion batteries for GM’s promised Chevy Volt PHEV due in 2010.

As reported by NewEnergyNews February 28 (STORING ENERGY GETTING BETTER), Ener1 is making the lithium-ion batteries for the Th!nk and claims its lithium-ion technology is the safest of any now available.

Insiders report A123 Systems will now also provide lithium-ion batteries for the Th!nk now that GE is involved in both companies.

A slide from Prof. Chiang's lecture. The PHEV revolution is coming. (click to enlarge)

GE invests in hybrid car, battery maker
Scott Malone, March 5, 2008 (Reuters)
and
The great battery race
Alex Taylor III, March 5, 2008 (Fortune via CNNMoney)

WHO
General Electric Co (GE), Th!nk, A123 Systems, General Motors (GM), Ener1

Another of Prof. Chiang's slides shows the advantage of the lithium-ion battery: More energy per volume. (click to enlarge)

WHAT
GE’s $4 milion investment in Th!nk moves it into the electric car market and its $20 million investment in A123 Systems (named after the Hamaker constant) moves it into the battery business that is the limiting factor in the electric car market. Most automakers are moving forward with hybrid gas-electric vehicles and the lithium-ion battery is expected to allow plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) to be mass-marketed.

WHEN
- Battery technology is 2 centuries old.
- GM has repeatedly promised it will bring the PHEV Volt to auto showrooms in 2010. The Volt is expected to use a lithium-ion battery.
- 13 gas-electric hybrids were for sale in 2007.
- 60+ gas-electric hybrids are expected to be available by 2011.

A123 Systems looks like a particularly good bet for GE. (click to enlarge)

WHERE
- A123 System is based in a Boston, MA, suburb.
- Th!nk is based in Norway.
- Ener1 is based in Ft.Lauderdale, FLA

WHY
- The new Th!nk Ev is being unveiled at the International Motor Show in Geneva.
- By market capitalization, GE is the 2nd-biggest U.S. company.
- Toyota is also working on a PHEV and a lithium-ion battery.
- Even Chrysler is adding gas-electric hybrids to its line.
- GM says it will offer at least 16 hybrid models with lithium-ion batteries made by Hitachi by 2012.
- Mercedes Benz will use Johnson Controls-Saft lithium-ion batteries made in France for its mid-2009 S400 Bluetec HEV.

The A123 chemistry makes its lithium ion battery especially efficient. (click to enlarge)

QUOTES
Kevin Walsh, managing director, GE Energy Financial Services: "Our work with A123 and Think taps GE's unique combination of venture capital, engineering, process and commercial expertise to help burgeoning, next-generation technology companies bring their innovative products to market…"