WSJ.com: As Tesla Preps Cheaper Model 3, Korean Firm Developing Battery for 200 Mile-Range Electric Vehicle That Costs $35,000
In addition to Tesla's forthcoming Model 3, LG Chem says it is preparing a pack for an electric car that is more than double that of most vehicles on the road today, but at a similar price. WSJ's Mike Ramsey joins the News Hub with Sara Murray to discuss.
The electric-car era may hit in 2017 when at least two battery-powered cars that can attain 200 miles of driving range and cost less than $40,000 enter the market.
In addition to Tesla Motors's forthcoming Model 3, a leading battery maker says it is preparing a pack for an electric car that extends the range of most vehicles on the road today, but at a similar price.
"We are definitely working on making a 200-mile-range battery electric vehicle at around the $30,000 to $35,000 price target," said Prabhakar Patil, chief executive of LG Chem Power Inc, a U.S.-based research arm of the South Korean battery company.
"It's more than a possibility. We feel we will be able to support such a vehicle around the 2017 time frame." He said more than one auto maker is interested in the technology, although he declined to say which ones.
General Motors Co is almost certainly one of them.
GM, which contracts with LG Chem to supply the Chevrolet Volt plug-in hybrid, has said it plans to introduce a 200-mile-range electric vehicle starting as low as $30,000.
A GM official said the project is on track, although he declined to offer details on the timing. Former CEO Dan Akerson first mentioned the vehicle last year.
The two electric cars GM currently offers—the Volt and Spark—get fewer than 85 miles in range on a single charge. GM said last week that it will introduce a fully redesigned Volt in 2015. It first introduced the model in late 2010.
The effort to produce a long-range electric vehicle shows the outsize impact that Tesla has had on the global automotive industry. When it announced that it was making a third-generation vehicle to come out in 2017 with a 200-mile range and a starting price of $35,000, many experts were skeptical it was possible because there appeared to be a lack of breakthroughs on this technology to improve range or lower costs.
Tesla alone has offered long-range electric vehicles and has been able to command a premium for them. Deutsche Bank upgraded Tesla's shares Monday on its capability to produce more vehicles, sending the stock to near record highs.
Other electric-vehicle makers, including Nissan Motor Co, the world's largest seller of EVs, have focused on lower prices rather than extending the range. The Nissan Leaf has a range of about 75 miles. That range is enough for most drivers' daily needs.
Still, a longer range and lower price tag could make electric cars more appealing to buyers who worry that today's vehicles won't hold enough charge to service their everyday needs.
Today, electric vehicles make up less than 1% of the new cars sold in the U.S., but the number has been rising.
Nissan, as the leader in EV sales, sold 15,755 Leafs through July in the U.S., up 35% over last year. Although most car makers sell an electric vehicle, most are symbolic offerings to meet California's air-quality regulations and nearly all have a range under 100 miles.
Today, the only electric vehicle with a 200-mile range is the Tesla Model S, a car that starts at $71,000, underpinned by a massive, 1,000-pound battery pack that experts believe costs at least $15,000. Tesla is working to reduce the cost of the pack by 30% by building a giant battery plant with Panasonic Corp and put out a car in 2017 that costs as little as $35,000 and still hits 200 miles—a range the company thinks is long, to entice people to ditch gasoline-fueled vehicles.
Mr. Patil, of LG Chem, said the batteries it is using are lithium-ion pouch cells, different from the small AA-size batteries Tesla uses in its car. The flexibility of pouches allows car makers to squeeze them into different compartments.
A combination of chemistry improvements that increase the amount of energy storage as well as cost-reduction efforts and better management of the electrical system, should allow LG Chem to lower the production price to make way for an affordable, long-range EV, he said.
Late last month, Tesla Chief Executive Elon Musk confidently proclaimed that electric vehicles are "heading to a place of no contest when it comes to gasoline," meaning electric cars will be lower cost.
In addition to Tesla's forthcoming Model 3, LG Chem says it is preparing a pack for an electric car that is more than double that of most vehicles on the road today, but at a similar price. WSJ's Mike Ramsey joins the News Hub with Sara Murray to discuss.
The electric-car era may hit in 2017 when at least two battery-powered cars that can attain 200 miles of driving range and cost less than $40,000 enter the market.
In addition to Tesla Motors's forthcoming Model 3, a leading battery maker says it is preparing a pack for an electric car that extends the range of most vehicles on the road today, but at a similar price.
"We are definitely working on making a 200-mile-range battery electric vehicle at around the $30,000 to $35,000 price target," said Prabhakar Patil, chief executive of LG Chem Power Inc, a U.S.-based research arm of the South Korean battery company.
"It's more than a possibility. We feel we will be able to support such a vehicle around the 2017 time frame." He said more than one auto maker is interested in the technology, although he declined to say which ones.
General Motors Co is almost certainly one of them.
GM, which contracts with LG Chem to supply the Chevrolet Volt plug-in hybrid, has said it plans to introduce a 200-mile-range electric vehicle starting as low as $30,000.
A GM official said the project is on track, although he declined to offer details on the timing. Former CEO Dan Akerson first mentioned the vehicle last year.
The two electric cars GM currently offers—the Volt and Spark—get fewer than 85 miles in range on a single charge. GM said last week that it will introduce a fully redesigned Volt in 2015. It first introduced the model in late 2010.
The effort to produce a long-range electric vehicle shows the outsize impact that Tesla has had on the global automotive industry. When it announced that it was making a third-generation vehicle to come out in 2017 with a 200-mile range and a starting price of $35,000, many experts were skeptical it was possible because there appeared to be a lack of breakthroughs on this technology to improve range or lower costs.
Tesla alone has offered long-range electric vehicles and has been able to command a premium for them. Deutsche Bank upgraded Tesla's shares Monday on its capability to produce more vehicles, sending the stock to near record highs.
Other electric-vehicle makers, including Nissan Motor Co, the world's largest seller of EVs, have focused on lower prices rather than extending the range. The Nissan Leaf has a range of about 75 miles. That range is enough for most drivers' daily needs.
Still, a longer range and lower price tag could make electric cars more appealing to buyers who worry that today's vehicles won't hold enough charge to service their everyday needs.
Today, electric vehicles make up less than 1% of the new cars sold in the U.S., but the number has been rising.
Nissan, as the leader in EV sales, sold 15,755 Leafs through July in the U.S., up 35% over last year. Although most car makers sell an electric vehicle, most are symbolic offerings to meet California's air-quality regulations and nearly all have a range under 100 miles.
Today, the only electric vehicle with a 200-mile range is the Tesla Model S, a car that starts at $71,000, underpinned by a massive, 1,000-pound battery pack that experts believe costs at least $15,000. Tesla is working to reduce the cost of the pack by 30% by building a giant battery plant with Panasonic Corp and put out a car in 2017 that costs as little as $35,000 and still hits 200 miles—a range the company thinks is long, to entice people to ditch gasoline-fueled vehicles.
Mr. Patil, of LG Chem, said the batteries it is using are lithium-ion pouch cells, different from the small AA-size batteries Tesla uses in its car. The flexibility of pouches allows car makers to squeeze them into different compartments.
A combination of chemistry improvements that increase the amount of energy storage as well as cost-reduction efforts and better management of the electrical system, should allow LG Chem to lower the production price to make way for an affordable, long-range EV, he said.
Late last month, Tesla Chief Executive Elon Musk confidently proclaimed that electric vehicles are "heading to a place of no contest when it comes to gasoline," meaning electric cars will be lower cost.
