Accelerating the

transition to electric

vehicles

Alan Finkel, October 2010

CTO, Better Place Australia

The problem

• Global warming from carbon dioxide emissions

• Peak oil

• Poor air quality in cities

Getting worse!

• 900 million cars worldwide now

• Massive growth predicted in China and India

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Electric vehicles are the answer

Electric vehicles are the future

But to start, a little bit of history…

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Electric cab, New York

1897

First automobile to reach 100

km/h, in 1899

First Wave 1890-1910

Second Wave 1990-2000

1990 Californian legislation:

10% of cars sold in 2003 must be zero-emission

Withdrawn in early 2000s

Tesla

Third Wave 2008 future

Tesla amazing performance

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Martin Eberhard and Marc Tarpenning, 2006

Tesla ultra-low CO2 emissions

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But most of all, these will be great cars...

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Nissan

Tesla roadster

Tesla sedan

Coda

Mitsubishi

BMW

Mercedes

SLS AMG E-Cell

Audi

Renault

Secret for Third-Wave success?

Seven reasons...

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≈100%

Petrol Electric

(green)

Reason 1 – operating C02 emissions

Car emissions

8%

Petrol Electric

National emissions

Petrol Electric

Reason 2 – oil consumption

Car consumption 30%

National consumption

≈100%

Petrol Electric

75%

National imports

Reason 3 – market perceptions

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Reason 4 – improved batteries

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1972

Stanley Whittingham

Exxon employee

km/kg

life

safety

“Costs are expected to come down by nearly

70 percent in the next few years.”

President Obama, July 2010

Reason 5 – Better Place infrastructure

Reason 6 – Better Place battery swap stations

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Reason 6 – Better Place battery swap stations

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Why not carry a spare in the boot?

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Reason 7 – lower operating costs

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Trains & trams have used electricity since late 1800s

because it is cheap, clean and reliable

Cost comparison for cars

petrol: 12 cents per kilometre

electricity: 3 to 4 cents per kilometre

All good, but what are customer concerns?

1) Price anxiety • batteries are expensive at low volumes

• impacts total cost of ownership

2) Range anxiety • country driving

• off-street parking

3) Battery anxiety

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How to eliminate these anxieties?

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Better Place Solution

• Better Place pays for and owns the battery

• Total cost of ownership near or below petrol vehicle

• Subscriber receives energy at home, work, public car parks, battery switch stations

Subscription model

How to eliminate these anxieties?

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Better Place Solution

• Private charge spots

• Public charge spots

• Battery swap stations

Range Extension

• Eliminates Cost Anxiety

• Eliminates Range Anxiety

• Eliminates Battery Anxiety

Battery Swap Stations

Electricity supply and impact

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Importance of Green Electricity

On existing mix of electricity generation

• 30% reduction typically

On “green” electricity

• 100% reduction

Better Place subscribers in Australia are guaranteed

green electricity

• Primarily wind and hydro

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EVs are well matched to renewables

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•Strong wind

•Strong sun

EVs are well matched to baseload power

Best-case charging

noon midnight noon

Power worst-case charging

NSW Australia – 1 million electric vehicles

Air quality

Conventional cars emit

• Sulphur oxides

• Nitrogen oxides

• Soot

• Old petrol cars are worst

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Air quality

Electric vehicles emit

• No sulphur oxides

• No nitrogen oxides

• No soot

• Old EVs remain clean

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No exhaust pipe!

Will batteries be the next form of pollution?

Minimize problem by postponing the “end-of-life”

event

• While creating significant value

Batteries withdrawn from vehicle are still good

• 80% residual capacity

• a million batteries each year

• “Second-life” opportunity

• Storage for renewables

• Supply peak demand

Does it add up to much?

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Enough to power Australia for 8 hours

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Ultimately, recycle

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90% recyclable

Embodied energy

0 20 40 60 80 100 120 140 160 180

BEV

ICEV

BEV

ICEV

BEV

ICEV

BEV

ICEV

Life Cycle Analyses across Entire Lifecycle

Road Glider Drive-train Car: Mantenance and EOL Battery: Production, maintenance, EOL Operation

Sources: (1) Notter et al. “Contribution of Li-Ion Batteries to the Environmental Impact of Electric Vehicles.” Env Sci Tech. 2010;

(2) Gauch et al. Presentation by EMPA (Swiss Federal Lab for Materials Testing and Research), 2009

EI 99 H/A

CED

GWP

ADP

LCA method:

European electricity mix, Golf size vehicles, petrol based 5.2 L/100 km

Why electricity instead of biofuels?

Quantity of biofuels required is huge

Crop diversion

Be smart –

use biofuels where there is no choice

• aeroplanes

• Interstate trucks

• ships

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Why batteries instead of hydrogen?

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70 kWh mechanical

Electric Car

100 kWh electricity

Hydrogen Car

Losses

Electrolysis

Compression

Distribution

Leakage

ICE engine

15 kWh mechanical

Global progress

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EV taxis in Japan right now

•World’s first electric taxi project using switchable batteries

•Funded by Japanese government in Roppongi Hills

•Allows heavy use, continuous driving

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Initial test of full solution in Israel, 2H 2011

Renault Fluence, first full size EV developed for mass market

Charging at home and public charge spots

Battery switch stations to enable full country mobility

Integration with utility partner

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Australian progress

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Canberra pilot on track

Announced

Planning

Approvals

Construction

Pilot

2009 2010 2011 2012 2013

Can we accelerate the transition?

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Opportunities in Australia

Car design?

Infrastructure

Develop abundant zero-emissions electricity

• Solar electricity

• Wind electricity

• Hydro

• Other

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What can government do to help?

Price on carbon dioxide emissions

• take into account externalities such as health

and environment consequences

Price on size

• big houses

• big cars

Price on excessive per capita use

• water

• electricity

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The big challenge – global warming

How do we cut carbon dioxide emissions without

• hurting the economy?

• undermining our lifestyle?

Solutions include

• downsizing

• behavioural change

• price driven?

• clean electricity

• electric cars

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Ultimate solution – Electron Economy

We could cut GHG emissions 46% by

• converting to clean electricity (38%)

• converting to electric cars (8%)

To cut emissions 71%

• electrify other transport (8%)

• replace non-electrical stationary energy (17%)

• (half of remaining 29% is agriculture)

Not in isolation!

• Combine with efficiencies & behavioural change

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