GE sees the electric car light, invests in Th!nk and A123
Just as I thought I was recovering from the shock of the new Th!nk Ox concept announcement, today's press release from GE made me feel like I was caught up in a Ronco commercial, "But wait, there's more!" No, GE is not getting into Super Bass o' Matics. It sights are set on no less than the "global electrification of transportation". Toward this noble and glorious end they have announced a $4 million investment in Th!nk Global.
GE knows that good battery tech will be an integral part of the success of its transportation market objectives and its taking a decidedly synergistic approach. From the ongoing Washington International Renewable Energy Conference (WIRC) they disclosed that not only will A123Systems, producer of the patented Nanophosphate(TM) lithium-ion batteries, be able to draw on the research and technology development expertise of GE Global Research in Niskayuna, New York, but GE will sink a further $20 million to become the company's largest single investor.
$24 million may seem like a lot to you or I but it is still only part of the $100 million financial commitment GE has made to different companies in the past 18 months through its ecomagination(SM) initiative. For more on all the in and outs of the initiative and GE's investment arrangements check out the press release after the jump.
Press Release:
GE Invests in Electric Vehicle Producer Think and Battery Manufacturer A123Systems to Commercialize Electric Car
GENEVA & WASHINGTON - March 5, 2008 - GE announced it is ramping up its efforts to enable global electrification of transportation by investing in Norwegian electric car manufacturer Think, which unveiled a five-seat crossover concept car in Geneva today. To power its vehicles, Think has signed a commercial supply agreement with lithium-ion battery manufacturer A123Systems. GE is in a unique position to help both companies commercialize technology to make electric transportation practical and affordable.
Think presented its investment relationship with GE in Geneva at the 78th International Motor Show, where it unveiled a new platform concept for larger electric vehicles: The crossover TH!NK Ox is an electric five-seat car close to the size of a sport utility vehicle but lighter and more aerodynamic. Also in Geneva, the company launched to the market the TH!NK City, a plug-in electric car with over 100 miles range.
GE announced its electric transportation investments at the Washington International Renewable Energy Conference. The commercial supply agreement with A123Systems provides Think with patented
Nanophosphate(TM) lithium-ion batteries for the TH!NK City, now in production at the company's factory in Norway. Think is delivering its first cars in Norway, with international sales to follow later in the year.
A123 is now drawing on the research and technology development expertise of GE Global Research in Niskayuna, New York. The joint research will support A123's battery development, including batteries for Think's vehicles.
GE Energy Financial Services announced it has invested in A123Systems to help the company roll out batteries for Think. GE is now A123's largest cash investor, having put more than US $20 million into the company. In addition, GE disclosed it has invested US $4 million in Think Global, the Norwegian holding company that makes the electric cars. The investments were made by GE Energy Financial Services' recently expanded seven-member venture capital group -- with offices in Stamford, CT, San Francisco, and Munich, Germany. That group has invested nearly US $100 million in 12 companies during the last 18 months.
GE Energy Financial Services and GE Global Research are backing electrification developments in the transportation sector. This is part of GE's ecomagination(SM) initiative, the company's commitment to help its customers meet their environmental challenges while expanding its own portfolio of cleaner energy products.
"Our work with A123 and Think taps GE's unique combination of venture capital, engineering, process and commercial expertise to help burgeoning, next generation technology companies bring their innovative products to market," said Kevin Walsh, Managing Director and leader of renewable energy investing at GE Energy Financial Services.
Added Mark Little, Senior Vice President and Director of GE Global
Research: "Our researchers are improving energy storage and conversion technology as the key enabler of our founder Thomas Edison's vision of electricity as a viable propulsion system for vehicles, ranging from automobiles to industrial vehicles and locomotives."
A123Systems' President and CEO David Vieau commented: "The GE Global Research Center has been working with A123 on the development of safe and reliable battery-powered transportation, and this has allowed us to accelerate delivery of advanced battery solutions to Think. Our newest collaboration with Think helps us achieve the large-scale production of batteries and integrate them into commercially available electric vehicles."
Speaking at the Geneva auto show, Think CEO Jan-Olaf Willums said:
"We see many important opportunities emerging from our new relationship with GE. This relationship will help Think - the manufacturer of the first highway-approved electric car in mass production - to stay at the forefront of electric vehicle technology."
GE's research includes a US $5.6 million US Energy Department contract to develop smaller, lower cost, higher performing hybrid drivetrain motors for hybrid electric vehicles. In addition, GE is working on a US $1.2 million project to develop advanced high temperature, high energy density capacitors. GE researchers are also engaged in a US $13 million project with the US Federal Transit Administration and other industrial partners to build a prototype lightweight, battery-dominant zero emissions hybrid fuel cell bus.
About GE Global Research
GE Global Research was the first industrial research lab in the United States and is one of the world's most diversified research centers, providing innovative technology for all of GE's businesses.
Global Research has been the cornerstone of GE technology for more than 100 years, developing breakthrough innovations in areas such as medical imaging, energy generation, jet engines, advanced materials and lighting. GE Global Research is headquartered in Niskayuna, New York and has facilities in Bangalore, India; Shanghai, China; and Munich, Germany. Visit GE Global Research at www.ge.com/research.
About GE Energy Financial Services
GE Energy Financial Services' 350 experts invest globally with a long-term view, backed by the best of GE's technical know-how and financial strength, across the capital spectrum and the energy and water industries, to help their customers and GE grow. With US $17 billion in assets, GE Energy Financial Services, based in Stamford, Connecticut, invests more than US $5 billion annually in two of the world's most capital-intensive industries, energy and water. More
information: www.geenergyfinancialservices.com.
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
About THINK
Think designs, develops, manufactures and markets environmentally friendly vehicles and technologies. The company has more than 17 years of experience in developing and producing electric vehicles. Today, 1,200 TH!NKs are driving on Norwegian roads. The new TH!NK City is a fifth-generation electric vehicle assembled in Norway. Series production of the TH!NK City car started late last year and the first cars will be delivered to Norwegian customers. At the Geneva Show, it announced the TH!NK City's launch in selected markets in Europe later this year. The capacity of its first assembly plant in Aurskog, outside Oslo, is presently being increased to 10,000 cars per year, which Think expects to reach during 2009. Strong owners with visions and resources want to make Think the "car company of the 21st century." For more info: www.think.no.
About A123Systems
A123Systems is one of the world's leading suppliers of high-power lithium ion batteries. The company's patented Nanophosphate(TM) technology enables its batteries to deliver a previously unattainable combination of power, safety and life. Applicable to a wide range of industries, A123Systems' products remove many traditional technology constraints to provide OEMs expanded flexibility in system design.
With world-class expertise and management, global manufacturing operations and one of the largest automotive lithium ion R&D teams, A123Systems and its Automotive Class Lithium Ion(TM) products are accelerating the automotive movement towards platform electrification.
Founded in 2001 and headquartered in Massachusetts, A123Systems'
proprietary Nanophosphate technology is built on initial developments from the Massachusetts Institute of Technology. A123Systems' Advanced Research & Government Solutions Division in Ann Arbor, Michigan is nationally recognized for new materials development and cutting-edge research. For additional information please visit www.a123systems.com.
[Source: GE via Green Car Congress]
Reader Comments (Page 1 of 2)
Phil L. 3:45PM (3/05/2008)
Hmmmm -
So this *isn't* the widely-anticipated announcement of Th!nk partnering with a "large automaker", which is still supposedly due this week:
http://www.autobloggreen.com/2008/02/27/th-nk-to-announce-deal-with-large-auto-maker-next-week/
Any thoughts on how this might dovetail into Th!nk's efforts with a "large automaker"?
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Tim 9:13AM (3/06/2008)
G.E. is one of the RICHEST corporations on the planet. Their 2006 revenue was well over $163 BILLION!
http://en.wikipedia.org/wiki/General_Electric
http://cjrarchives.org/tools/owners/ge.asp
$4 Million is NOTHING to them. They spend MANY times that each year just entertaining clients.
Cheap P.R... priceless. This is a VERY sick joke!
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KarenRei 5:10PM (3/05/2008)
4 million may be nothing to GE, but it certainly is something to Th!nk.
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Throwback 4:16PM (3/05/2008)
Tim, are you suggesting they should invest all of their profits in a venture that MAY be profitable? They invested enough to be the largest shareholder, that seems like a big investment to me. I still don't think the average car buyer is waiting breathlessly to have to plug-in their cars.
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Tim 4:21PM (3/05/2008)
Throwback- They spend much more than this JUST to solicit ONE gov't defense contract.
Give me a break!
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Throwback 4:35PM (3/05/2008)
I don't doubt that, but what does that have to do with investing in an unproven company? The defense contract has a known return on their investment. They are a for profit company, not a charity. I'm glad they invested in Think, as I am sure are the employees.
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armmat 4:47PM (3/05/2008)
If GE spend more time investing and developing new technologies for the benefit of this planet and things that live on it, we'd not be in this mess to begin with.
This entire affair with Think goes to show how easily we could solve problems with the monies we have. Look this war. Over a trillion dollars yet?
Are people this dense to think that all that money wasted couldn't have gone to investing in this country's infrastructure, health care, transportation, environment? Can you all imagine what wonders this money would have done? What do we do instead? Kill over 100,000 people and build a $700 million dollar fortress compound 104 acres in size.
People are just DUMB.
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Throwback 5:11PM (3/05/2008)
armmat what are you talking about? Government spending is different from private industry spending. Like it or not we are a capitalist country
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mike 6:02PM (3/05/2008)
Sounds like good news.
Sounds like we may actually see the Think in the USA.
And yes, I am waiting to plug in my plugin electric vehicle, as commuting to work on electric power is cheap enough to pay for 1/2 to the whole cost of an electric car over 10-15 years. It's almost like getting the car for FREE.
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ug 1:04AM (3/06/2008)
"I still don't think the average car buyer is waiting breathlessly to have to plug-in their cars."
You really think they are happy paying $3.50+ a gallon for gas??
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mike2 5:50AM (3/06/2008)
“I still don't think the average car buyer is waiting breathlessly to have to plug-in their cars.”
Well I guess the average car buyer IS toooo stupid to realize that plug-ins help get rid of BIG OIL companies and BIG OIL producing nations.
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Throwback 8:32AM (3/06/2008)
ug no one enjoys paying $3.50 per gallon. The average car buyer, who wants to save gas will buy a smaller car. SUV buyers are moving from truck based SUVS to crossovers just to save 3-4 mpg. Car owners have never had to plug in their cars, to think everyone will jump on the band wagon and WANT to plug in their cars is silly. How many car owners live in apartments or condos with no access to plug in cars? How many people live in cold climates where battery range could be cut in half will want an electric vehicle? Plug ins may be popular on this blog, but that does not mean the 15 miilion+ car buyers each year think the same. My point remains the same, widespread electric car sales is not a sure thing, GEs investment seems reasonable to me.
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GenWaylaid 4:42PM (3/06/2008)
I grew up near Niskayuna, NY and I remember going to the local museum as a kid and seeing the electric car GE built thirty years ago.
http://www.schenectadymuseum.org/02_exhibits/02_b.htm
They never took it past the prototype stage, but it goes to show that GE has a history with electric cars. It makes sense. After all, they're not called General Gasoline.
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Guenther 5:19PM (3/06/2008)
ug- people appear to be perfectly content, otherwise they'd do something about it- like use less G-damn gas.
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Chris M 7:27PM (3/06/2008)
Driving on electricity costs considerably less than driving on fossil fuels, 1 to 3 cents per mile versus 6 to 30 cents per mile for petrol. It also means far fewer trips to gas stations. Once people realize the advantages of "plugging in" they will be really eager to do so.
GE saw an opportunity for a good green investment and took it. Don't forget that GE is the worlds leading producer of high efficiency electric power plants, power transmission equipment, and wind generators.
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mike 7:42PM (3/06/2008)
As the top 1% mismanages this country into a recession, with "free" trade and worker outsourcing, plant relocation to China, I have to think of every penny I spend. You know those "core inflation" pay raises just put me in the hole Year after Year.
Buying electric is one good source for future savings, if you have to have a car.
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greenesthost 3:29PM (3/07/2008)
What does everyone think about the idea of the Th!nk Ox replacing all taxi cabs on the streets? The company explains that the size and shape is perfect for this. What are we waiting for? I agree GE should shell out a bit more than $4 mil. Greenest Host Blog
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Eric 3:07PM (4/09/2008)
Day late dollar short - but be ok with it in spite of all the bs it's about and has/ still wreaks, for another...........? better than never? GE? New era of monopoly men? This is going all wrong. Somebody get with it. Where's the legislation to open the patent for public use re EESTOR's battery they sold exclusively to Lockhead - after ZENN had invested...?
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Eric 6:03PM (3/18/2008)
decades late trillions short millions dead etc etc etc - but be ok with all the bs that has and will still wreak for.......? GM? New era of monopoly men? Where's the legislation to open the patent for public use re EESTOR's battery they sold exclusively to Lockhead after ZENN invested?
Just the tip.
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Eric 6:25PM (3/18/2008)
oops - wasn't sure if it got through.
i had hoped that think wouldn't do that.
all of america (hollowood) can't find any real production value so think sold out to ge for 4 mill? wtf? think about it.
ox before...
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