Long term, this announcement means we will be able to mass manufacture CODA’s battery system to help other companies join the electrification movement. And finally, it means we can move forward with our plans to develop battery systems for utilities looking to store renewable energy.

To wrap-up, I want to add some color on our partnership with Lishen. As one of the top Lithium-ion battery producers in the world, Lishen makes the battery cells for some of the top electronics companies, like Apple, Motorola, Samsung, Vodaphone and others. We partnered with Lishen for a few reasons, but the decision really came down to chemistry (no pun intended). What we found in Lishen was a partner ready and willing to work collaboratively with CODA engineers to quickly bring a transformational product to market. And together, we’ve done something neither could do alone: create a disruptive technology that will catalyze a movement to forever change the transportation and renewable energy sectors.

Off to work.

-Kevin

The Lux report claims a much slower growth rate for plug-in vehicles over the next decade than industry expectations, with an estimated 3-8% market share of global new-car sales by 2020.  The study cites the leveling off of oil prices and a slow decline of battery prices to keep the cost of electric cars high.

We think the study neglects two very important influencers that will factor into people’s purchasing decisions: 1) lower total cost of ownership and 2) people’s desire to do right by the environment.

Total Cost of Ownership Factor

While the cost of electric car batteries may be high right now, commercialization of battery systems and increased production will bring the per kilowatt hour price down, which in turn will lower the cost of electric cars.  Even the Lux report estimates that battery prices could go down by 30-40% by 2020, which could lead to significant reductions in EV price points.  Beyond the battery, driving an electric car over a gas car would save people thousands of dollars in operating and maintenance costs each year.  Below is a comparison of potential savings between a gas car and the CODA electric car:

Assumptions:

• Price per gallon – $3
• Annual miles driven – 15,000
• Conventional mileage – 21 mpg
• Watt-hours per mile of battery – 300
• Mileage per kilowatt hour – 4 miles
• Electricity cost per kilowatt hour – $0.07

Environmental Factor

The Lux report completely ignores consumer’s increasing desire for products that help them reduce their carbon footprint.  In 2007, the Alliance for Climate Change and Roper Reports found that only 28% of Americans are environmentally uninterested.  Of those that are interested in protecting the environment, 13% can be categorized as “selfless greens” – meaning, they are willing to change their behaviors and sacrifice for the environment.  That’s about 40 million Americans who probably dislike “big oil” and would actively try to change their lifestyle to protect the environment.

Saving money and the environment?  We think the Lux report underestimates how much demand there will be for electric cars once Americans understand the economics and environmental rewards.