7 Comments

Summary:

When Shai Agassi launched his electric vehicle infrastructure venture, Project Better Place, he already had a whopping $200 million in commitments. According to media reports (via Globes, Reuters), Agassi just received another commitment for $30 million from Ofer Shipping Holdings. Ofer is owned by Sammy and […]

agassi1.jpgWhen Shai Agassi launched his electric vehicle infrastructure venture, Project Better Place, he already had a whopping $200 million in commitments. According to media reports (via Globes, Reuters), Agassi just received another commitment for $30 million from Ofer Shipping Holdings.

Ofer is owned by Sammy and Idan Ofer and Udi Angel, and according to the Globe’s article this is a separate infusion from another investment that will be made by Ofer’s subsidiary Israel Corp. (ILCO). Israel Corp already decided to invest $100 million in the venture in exchange for 33.3% of the project. We contacted Project Better Place for more info on this fundraising and will update the story when we hear more.

Agassi’s Project Better Place will likely require even more capital than these hundreds of millions to build out the infrastructure for its battery-charging stations for electric vehicles. Infrastructure plays in any industry require an enormous amount of capital, especially in a green field business that involves partnerships with car and battery makers.

A lot of VCs and energy executives we’ve chatted with have been skeptical of the startup’s wildly ambitious plans, and doubts surround not only the sheer massive amount of capital the venture will take, but also the numerous country regulatory hurdles the startup will have to jump. And that’s not considering the fact that the venture is being led by a founder with little history in the energy or car industries. Shai Agassi was once expected to be the future leader of SAP.

Though if the plan can succeed it could be revolutionary. The sticking point of electric vehicles is their range per charge and immature battery technology. Project Better Place intends to offer the vehicle charging service to electric vehicle owners, the way mobile phone companies sell cell phone service. (Agassi even told the New York Times, “If you think of Tesla as the iPhone, we’re AT&T.”) Subscribers to the network would be able to get subsidized vehicles, but consumers would still own their cars.

WSJ says that the company would buy and own the batteries and that Agassi expects the subscription to be less than the economics for current gas-based cars. And the company says that over the next two years, it will build out the infrastructure and put hundreds of thousands of vehicles into its network. Over the next 10 years, the company hopes the system will be widespread. Good luck. (Be sure to check out Shai Agassi’s blog, too).

You’re subscribed! If you like, you can update your settings

  1. PHEVs can provide 90% of the benefits of all-electric vehicles at less than half the additional cost. And with no range limitations.

    Even Tesla realizes the problems with battery pack swapping. Ugh! Think of the material moving equipment needed to install and remove packs weighing hundreds of pounds. The storage. Ugh! Ugh!

    PHEVs can charge up at home or at work using a conventional outlet in about 3-5 hours. No additional infrastructure needed!

    Hmm, maybe they aren’t actually proposing battery pack swapping. But then I don’t understand what this infrastructure is then. Why is a station needed? Why can’t they augment a parking lot or something?

  2. Jim,
    I suggest you go to Shai Agassi’s Project Better Place and watch the webcast. This man has grand plans and the potential to significantly change the way we see electric cars.

    Yes, PHEV’s will take care of the daily commute for a lot of people but Project Better Place aims to open up all car based travel to electric cars by providing all the infrastructure required for long range driving. I’ll certainly be watching with interest.
    Luke

  3. Shai Agassi and Project Better Place « netzwellen Sunday, January 6, 2008

    [...] capital ontop of the previous round of financing projectbetterplace.com has received.  This story from earth2tech,gives a good overview and I stronlgy recommend reading it if you are interested in [...]

  4. Project Better Place Video: Cute Kids, Electric Cars « Earth2Tech Friday, January 11, 2008

    [...] 2008 at 8:06 am in Startups Shai Agassi’s well-funded electric vehicle infrastructure startup, Project Better Place, produced this video clip for the YouTube Davos video contest in answer to the question posed: [...]

  5. Earth2Tech » Blog Archive » Project Better Place Video: Cute Kids, Electric Cars Friday, January 11, 2008

    [...] Agassi’s well-funded electric vehicle infrastructure startup, Project Better Place, produced this video clip for the YouTube Davos video contest in answer to the question posed: [...]

  6. Project Better Place and Renault-Nissan Charge Ahead in Israel « Earth2Tech Monday, January 21, 2008

    [...] Better Place, which has raised at least $230 million from investors Israel Corp, Ofer Shipping Holdings, Morgan Stanley, VantagePoint Venture Partners, and private investors, will build 500,000 charging [...]

  7. Green energy is definitely the best solution in most cases. Technology like solar energy, wind power, fuel cells, zaps electric vehicles, EV hybrids, etc have come so far recently. Green energy even costs way less than oil and gas in many cases.

Comments have been disabled for this post