Daniel Englander

GE Takes on the EV Market March 5, 2008 at 12:59 PM

About a month ago I posted a response to Xconomy’s William Taylor, arguing (along with my homey Andy Grove) that GE should get into the electric vehicle game. Well, it turns out my mother isn’t the only person reading this blog. Announcements made today at WIREC and the Geneva Auto Show by GE, A123 Systems, and Think Global point to a significant investment and development relationship in the works among the three companies.

To date, GE Energy Financial Services has invested nearly $20 million in A123, making it the battery company’s largest cash investor. GE has also invested $4 million in Think Global to support Think’s commercialization using A123 batteries. After the jump, it’s electric!

Think Global made three announcements at the Geneva Auto Show today. First, it unveiled its TH!NK City EV, with an A123 19 kW battery as one of the drivetrain options. Second, it launched its TH!NK Ox five-seat crossover. Third, it announced an ongoing commercial supply agreement with A123 for the company’s lithium-ion batteries.

A123 broke the news on its close relationship with General Electric. Aside from receiving $20 million in cash from the conglomerate, A123 is partnering with the GE Global Research unit for ongoing research and development of its lithium ion batteries. Commenting on the cross-platform arrangement, A123 CEO David Vieau said “the GE Global Research Center has been working with A123 on the development of a safe and reliable battery-powered transportation, and this has allowed us to accelerate delivery of advanced battery solutions to Think.”

Though GE’s involvement in this relationship is limited to developing battery and drivetrain technology, the arrangement points to a deepening involvement in expanding the company’s transportation operations. Whether this work will develop into a an electric produced by GE (possibly through an acquisition of Think) remains to be seen. Further integration among the three companies will allow for ongoing technology development and enhanced commercialization potential for EVs at a price point much lower than what was originally expected.

The move also shows good judgment on GE’s part for not picking one of our Top 5 Ugliest Green Vehicles to partner with.

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