Lucid Motors has become the latest startup automaker proposing to build electric cars in the U.S.
The company—formerly known as Atieva—says it plans to break ground next year on a new factory in Casa Grande, Arizona.
Lucid will begin production of its first electric car by 2018, it said in a statement, and expects to employ more than 2,000 people at the factory by 2022.
The ambitious timeline can't help but bring to mind another new automaker—Faraday Future.
Faraday too said it plans to put an electric car into production within two years, and earlier this year it broke ground on its own factory in North Las Vegas, Nevada.
While Faraday still apparently plans to unveil its first production model at CES in January, work on the factory has stopped, seemingly due to unpaid bills.
Teaser for Lucid electric car
Faraday received a generous package of incentives from the state of Nevada to locate its factory there, but Lucid so far hasn't discussed any incentives offered by Arizona.
It said the site-selection process began over a year ago, and that more than 60 potential sites in 13 states were considered.
Casa Grande was chosen for its "pro-business mindset," available workforce, nearby academic institutions, the company's release said, as well as its proximity to Lucid's Silicon Valley headquarters and suppliers.
The factory is to be overseen by Lucid director of manufacturing Brian Barron, an 18-year veteran of BMW.
The electric car to be built there is expected to be a fast luxury sedan that competes with the Tesla Model S, which has been in production since 2012 and is regularly updated.
Thought to be called Atvus, the Lucid car will reportedly be a mid-size luxury sedan close to the BMW 5-Series in size.
Teaser for Lucid electric car
It is expected to use a dual-motor powertrain, supposedly producing as much as 900 horsepower.
Lucid has demonstrated this powertrain hardware in "Edna," a Mercedes-Benz Metris van converted into a test vehicle.
In videos that circulated over the summer, Edna dispatches a Model S, a Ferrari California T, and other high-end performance cars in drag races.
In an interview last month, Lucid CTO Peter Rawlinson mentioned a top speed of more than 200 mph, a range of at least 300 miles—and possibly as high as 400 miles in some versions.
Teaser for Lucid electric car
Lucid (then Atieva) was founded in 2007 by a former Tesla vice president and the founder of a networking company.
It started out developing monitoring and control software for battery packs used in electric vehicles to be produced by other companies.
Insiders suggest, however, that the company's founders always had a long-term goal of building its own vehicles.
Atieva eventually decided to build its own electric cars, and secured investments for that purpose from Chinese automaker BAIC (Beijing Automotive Industry Corp.).
It then received additional funds from Jia Yueting, billionaire and founder of Chinese tech giant LeEco.
Jia is also one of the main backers of the troubled Faraday Future.
It’s been awhile since we heard from Fisker Automotive, and with good reason. While the green automakers has managed to (barely) stave off bankruptcy, execs have been scrambling to find a buyer for the builder of the Karma hybrid. Once again Fisker has looked to China for salvation, and has reportedly found a suitor in BAIC.
BAIC is reportedly interested not just in Fisker’s hybrid tech, but in also launching a luxury car brand with an established name and dealer network. As it stands, bids to buy Fisker have ranged from as little as $20 million from Bob Lutz and VL Automotive to $30 million from Henrik Fisker himself. That’s just a fraction of the $1 billion Fisker was once valued at, and less than 20% of the $171 million Fisker still owes the U.S. government.
But Fisker isn’t likely to attract much more money than that for a number of reasons, primarily being that most of its technology are off-the-shelf parts from other automakers. For example, the “generator” used to power the battery packs was a GM engine, and the batteries themselves came from A123 Systems, which went bankrupt and was bought by China’s Wanxiang. Also, Fisker was losing $35,000 on every Karma it sold, and the automaker hasn’t built a car in some 18 months. So whoever buys Fisker isn’t getting much for their money.
But none of that matters to BAIC, who would likely gut Fisker and start fresh. If I was in charge, I’d go the Bob Lutz route of ditching the hybrid drivetrain, dropping a big V8 engine under the hood, and start selling Fisker Karmas as luxury sports sedans. Eventually the company could work its way back to selling hybrids, but Fisker needs cash flow, and fast.
Opinion writers can say what they will of General Motors, but the company is not stupid.
Despite all the rhetoric talking heads churn – including a recent Forbes op-ed saying GM is headed toward a second bankruptcy – that in turn Bob Lutz quickly rebutted in the same publication saying the “chicken little” spinmaker wrote what amounts to “fatuous twaddle” – GM is a more or less savvy investor.
While, as the “chicken little” writer noted, GM is not investing in its own undervalued stock – or at least hasn’t bought it all back – GM is investing in China where it was among the first to do so, and we are seeing more and more companies turning to that land of opportunity, and essentially declaring there’s gold in them thar hills.
The above quibbling between the two disagreeing Forbes writers – one a car guy, the other not – could have been its own blog post, but sparing the drama for today at least, I’ll link them for your consideration, and talk about actual happenings – or more substantive drama, you decide.
GM Making progress on EV battery development in China
Slapped with tariffs and denied five-figure subsidies available to domestic electric vehicles, at last reported count the Chevy Volt priced in China at $79,000 has sold around 18 units since its January launch, but undeterred, GM is hard at work on longer term Chinese EV plans.
Besides co-development of electric vehicles for future domestic manufacture with joint venture partners, another milestone was just reached by the GM China Advanced Technical Center in Shanghai.
There, the world’s largest automaker is building and testing battery cell prototypes that can be incorporated in Chinese-produced EVs that will sell for much less than the Chevy priced like a top-line Caddy, be much more profitable – and this will not just pay benefits for the domestic market, but potentially also for export to other markets.
Yes, cost savings is a major advantage being touted and battery researchers are working on such details as processes, material preparation, coatings for the batteries, cell fabrication, and performance testing for the new energy storage technology in development.
“Producing the first prototype battery cells is a big step forward for the GM China Advanced Technical Center,” said John Du, director of GM China’s China Science Lab. “It is critical for enabling GM to develop smaller, lighter and lower-cost new-generation batteries. Leveraging this success, the independent assessment system for battery materials will help speed up technical progress.”
GM is at the same time fleshing out a workable supply chain and building strategic relationships to enable it to be a “smart cell buyer.”
China has a plan to see a for-now paltry number of EVs on the road mushroom to five million by the year 2020. GM also has 20-20 vision it would seem, with an eye for that big market.
It established an early foothold years ago in the rapidly developing nation, and as China aims to cut pollution with electric vehicles, surpassing all other EV markets in the process, GM intends to be there.
As mentioned, GM is not the only U.S. company being established in China, and by China. Industry watchers are also noting that for plug-in vehicles, China is on its way to becoming the place to be whereas in the U.S. things are progressing also but there are said to be more barriers to overcome.
Facts: The U.S. bought about 12.7 million total consumer vehicles last year, and the infant plug-in segment took just 0.22-percent of that. Last month the plug-in “take rate” edged up to 0.26-percent of the market – among those automakers brave enough to stand up and be counted, so that excludes efforts by Tesla, Fisker and Coda. In July the count for electrified vehicles was 2,741 total units – less Tesla, Fisker and Coda – making a year-to-date total of 17,813.
Even with new plug-in efforts coming – and some existing players on the defensive or messing up all by themselves – Obama’s one-million EV/PHEV projection by 2015 looks to be at least a couple years early if things go as hoped, while China intends to leapfrog in a big way. And if it does, as Bob Lutz has also noted, it will thank American businesses among those who help it.
What appears to be happening now might be called in the extreme a brain drain from the U.S., and if that is too strong a description, it could at least be called a brain share. Is this a good thing? We hear all sorts of opinions, but do know it is has been happening …
Boston-Power Underscores China’s EV Commitment
No one stole the former GM intellectual property in this car. Based on rights purchased in 2009 from SAAB, the BAIC C70 electric sedan is due to launch this fall.
Earlier this month, lithium-ion battery maker Boston-Power, Inc. announced it signed a multi-year agreement to locate R&D, engineering and manufacturing facilities in China to provide battery systems to Beijing Electric Vehicle Company (BJEV), the electric vehicle delivery arm of Beijing Automotive Industry Company (BAIC).
Yesterday a blog post by Scientific American posited – as others have – that this is part of a greater trend.
China is looking more like the path of least resistance, as the U.S. electric vehicle (EV) movement is meanwhile bogged down by policymakers’ indecision and in cases mistaken impressions as to its viability by consumers and leaders.
We’ve seen also such things as Fisker Automotive spanked by the politically pressured U.S. Department of Energy which froze loans after Fisker missed early production deadlines. We’ve repeatedly heard pundits and politicians invoke the dreaded name of “Solyndra” as a lost gamble by the government meddling incompetently in private industry when it can nary afford to.
Whether right or wrong, these facts have contributed toward a chilling effect on what could be seen as a viable and sustainable means to improved energy security and reduced emissions when things need to warm up. And we’ve seen U.S. companies going directly to China for funding, bypassing domestic red tape and resistance, plainly saying they are doing so in the process.
Seeming to fit the broader trend, Boston-Power is taking significant intellectual capital to where the action is, and where it is being said they know what they want, and have the political will to get there.
It also sees the U.S. as the second-largest potential EV market, but noted the greater potential it sees in China.
Boston-Power was started in 2005 by Dr. Christina Lampe-Önnerud, and she was quoted yesterday as one more (not insignificant) voice contrasting a unified Chinese energy policy with a disunited one in the United States.
“China has committed to achieving sustainable energy innovations in all aspects of society, including transportation,” said International Chairman Lampe-Önnerud. However, the U.S. government “is torn on its national priorities,” and, “… it needs a clearer energy policy.”
Lampe-Önnerud gave an optimistic picture to Forbes in April 2011. Her company will continue to contribute here, but is also taking its talents to China where she sees less flak for what she hopes to accomplish.
As such, Boston-Power has signed its multi-year contract. Based on a long-standing working relationship between the two companies, Boston-Power projects that its battery systems will be used in hundreds of EVs beginning this year and by 2014 the business will grow to thousands of EVs.
“China is committed to leading the world in electric vehicle innovation, manufacturing, public policy, consumer adoption and export,” reiterated Boston-Power Chairman Sonny Wu. “Boston-Power’s award-winning battery systems can play a significant role in helping to accomplish those goals. We’re pleased to team with Beijing Electric Vehicle Company and Beijing Automotive Industry Company to bring world-class EVs to the market.”
As an initial step, BAIC intends to begin production of its C70 electric sedan this fall. The car is based on the 9-5 SAAB chassis it acquired in 2009.
China’s central planners are working toward a goal of five million EVs by 2020 from next to nothing today. The push is intended to make the world’s largest auto market into the largest electrified vehicle market as well.
“China’s stated policy is to lead the world in the development of clean transportation and we intend to produce thousands of hybrid and electric vehicles,” said Fang Qing, general manager of Beijing Electric Vehicle Company. “We are impressed with Boston-Power’s green and high performing technology. We welcome the opportunity to work with the company and our other key suppliers to bring EVs to consumers in China and around the world.”
To be part of the effort toward supplying China with a new type of transportation, Boston-Power is establishing a research, development and engineering facility in China, as well as a state-of-the-art manufacturing plant there.
Scientific American observed in the U.S. there is a perception problem with the viability of lithium-ion batteries as being – in so many words – not ready for prime time.
But Lampe-Önnerud – who tells some of her story in the above video – begs to differ. She has 80 patents at various stages and as a chemist, entrepreneur and innovator, says the ceiling has not been hit on technology now available.
Obviously her Chinese partners believe this to be the case, so Boston-Power will work with BAIC to build their transportation sector while those in the U.S. make some progress while also doing a whole lot of arguing about it.
She said Boston-Power’s battery product line, which is called “Swing,” has a long evolutionary life ahead of it, and is only at stage two now.
These batteries, she says, have 50-percent greater energy density by weight and 45-percent more by volume and are robust – able to handle Beijing’s -40 degree Celsius temperatures.
At the same time, the chemistry boasts a strong safety record and “are better in all aspects – higher energy density, long life, quick recharge – which to some people is a bit of a surprise.”
Noting perceived resistance to EVs in America is as much to blame on the culture in the auto industry as it is on perceived inadequacies of technology, Scientific American quoted Lampe-Önnerud who benignly said, “It takes a long time to gain market acceptance.”
The U.S. and China are otherwise seen to be the two biggest EV leaders, according to a Boston-Power press release, but it is clear China is doing many things to lead toward greater growth.
Boston-Power is just the latest company to find China offering a clearer path, more upside potential, and readily accessible funding.
Chinese industry leaders such as BAIC’s General Manager, Qing, have said they intend to not only help build out China’s home market, but will also turn around and export EVs in years to come.
Beijing Automobile Group Co., Ltd. (BAIC Group) will begin mass-production of all-electric vehicles in 2011 and will roll out 30 units of the C60 electric cars this year, the Beijing News reported Monday.
BAIC, the Chinese partner of Daimler AG and Hyundai Motor Corp, also plans to put into operation a production base with annual capacity of 40,000 new energy vehicles in the second quarter of next year.
Lin Yi, who is responsible for BAIC's new energy vehicle project, said among the 3,500 all-electric vehicles to be built next year, the C60FB using the Saab 9-3 platform will account for 800 units, the C301 based on the C30 will account for 1,200 units and the rest 1,500 units will be the M30 R B electric minivans. At present, ten C60FB electric cars have rolled off the assembly line.
BAIC, the country's fifth-largest automaker, will make all-electric vehicles based on its C-, B-, A+-, A- and A0-class models as well as its mini vehicles in the future.
The initial C60FB will be available in 30kW and 60KW versions, both adopting the lithium-ion battery and permanent magnet synchronous motor. The first version has a top speed of 160 km/h while the second version has a peak speed of 190 km/h.
Under the Group's '12 5' plan (2011-2015), its new energy vehicle base will have an annual production capacity of 150,000 vehicles, 200,000 control systems and of 150,000 driving systems when operation starts and will generate annual sales revenue of 15 billion yuan ($2.2 billion).
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