Daniel Englander
TH!NK Tests Battery, But Where’s A123? June 10, 2008 at 9:33 AM
Norway’s TH!NK Global has successfully tested a lithium ion battery pack made by EnerDel, a joint venture between Ener1 and Delphi. The companies installed and demonstrated the 27 kWh battery pack in a TH!NK City electric vehicle at TH!NK’s manufacturing facility in Indianopolis. Ener1 delivered three battery packs to TH!NK earlier this year, and the company says the delivery, installation, and demonstration progressed ahead of schedule. Ulrik Grape, Ener1’s CEO, said, “we anticipate that we will be able to meet the schedule set by our supply agreement to begin production of integrated battery packs by the end of the year.” It is likely the companies will be able to meet their targets for manufacturing pre-production models over the next three months, putting TH!NK in a good position to begin rolling into volume production for sales in the UK and Norway during the second half of 2008.
This is a significant accomplishment that lays the groundwork for what appears to be the market’s first commercially-feasible EV. However, given TH!NK’s numerous big name partnerships - KPCB & RockPort Capital, General Electric, A123, Porsche - it’s surprising the company’s first major production milestone comes with Ener1. In March, TH!NK announced it had signed a “commercial supply agreement with A123Systems” to provide the company with lithium-ion batteries for its TH!NK City. Since then, however, there have been no major production announcements or further developments. Perhaps A123 has been caught up in rolling out its Hymotion PHEV conversion kits, or working with the U.S.A.B.C., or holding GM’s hand.
Another possible conclusion here may be found in the companies behind EnerDel. The battery maker is backed by Ener1, auto parts supplier Delphi, and Japanese conglomerate Itochu. In other words, EnerDel’s backers have a significant amount of experience rolling out electronics components designed for the auto industry at scale and at cost. Itochu, for example, is helping EnerDel meet its volume production targets through both operational and strategic support. At the risk of sounding like a broken record, this makes me wonder whether, when the pedal hits the metal (so to speak), startups will be able to compete with established companies in this increasingly commoditized industry. A123 is reportedly seeking at an IPO with a $1 billion valuation, so this may help, and the company has established manufacturing centers in China. But they’re resources aren’t as extensive as EnerDel’s, and this may cause some problems later on down the road.
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Thank you for this outstanding article.I thought Centrino was the best technology for laptop battery performance.
A123 have a technologically superior product to EnerDel’s and I think that this will prove a dcecisive factor once the first flush of EV products is out of the way