While Detroit’s Big Three have become the nation’s favorite punching bags, electric car companies have soared to hero status. Politicians get it. That’s why they’re clamoring to align themselves with green initiatives, especially—at least lately—clean cars.
The latest clean car announcement came out of Hawaii on Tuesday. Governor Linda Lingle unveiled plans to roll out by 2012 a statewide network of electric car charging stations. Better Place, a Palo Alto startup, will build the stations and provide recharged batteries for electric cars.
The concept should sound familiar. Just last week the San Francisco Bay Area’s big city mayors endorsed a plan by Better Place to create a $1 billion infrastructure by 2012 for electric cars in the region. Better Place also has deals in Australia, Denmark and Israel.
One major hurdle for the electric car industry is the cars’ limited ranges between charges. Even the much-hyped Chevy Volt, slated for sale in 2010, will have to depend on its gasoline generator after 40 miles of electric propulsion. By building a network of battery charging and exchange stations, that stumbling block falls.
Another issue is the cost of the batteries. Some 20% of the Toyota Prius price tag comes from the battery. Better Place thinks it’s nipped that one in the bud as well. Better Place would own the batteries. Their customers would subscribe to join the network of charging stations and in return get a discounted price on an electric car.
In some previous deals, Better Place is working with Nissan-Renault to supply the cars. And the Associated Press reported that Better Place Chief Executive Shai Agassi said he’s talking to the U.S. Big Three: Chrysler, Ford, and General Motors.