In the United States, federal laws already allow significant income tax deductions that apply to new vehicles, such as the upcoming Nissan Leaf.   According to IRC 30D, purchasers of electric cars are allowed a basic tax deduction of $2,500 and vehicles with larger battery packs can provide tax savings up to $7,500.  Those who modify a gas guzzling car into a vehicle capable of operating with electric charge qualify for a tax benefit of $4,000.  Overseas in the UK, government grants provide up to £5,000 to buyers of ultra-low carbon hybrids, or plug-ins.

So what about the States?

Depending on the state in which you live, tax incentives can vary wildly.  For example, California‘s Clean Vehicle Rebate Project allows rebates up to $5,000 for low-carbon cars and up to $20,000 for commercial trucks.

Washington car buyers are exempt from paying sales taxes on electric and fuel-cell powered cars.   Converted cars are eligible for tax credits as well.

The state of Tennessee, choosing to go in an interestingly different direction, is offering free charging equipment to plug-in owners who need to refuel at home.  As of now, however, only certain cities are eligible.

Florida provides special financing arrangements for those who wish to install charging equipment on their property.   Residents or businesses in the Orlando metropolitan area can apply for free charging equipment from Coulomb Technologies.   All electric vehicles are allowed on the High Occupancy Vehicle (HOV) Lane.

To learn more about the wide variety of rebates, grants, and credits that might be offered in your state, the Department of Energy breaks down the laws and tax incentives.  As you can see in the table, certain states are way ahead of others (ahem, California) in the subsidizing game… for better or for worse.

These laws are fluid, and they are certainly going to be amended and updated once the plug-in rollout hits full speed.  In determining whether to opt for an electric car, price is obviously a major consideration for consumers.  Whether it trumps performance, and more importantly, convenience, is another question.  It seems, however, that all these considerations are at least being worked on.

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Perhaps the single greatest barrier to widespread adoption of plug-in automobiles is the time it takes to charge them.  We have looked into charging times in the past, and even with the most advanced infrastructure in place at charging stations, you are still looking at one hour or more to fully recharge your battery.  The automobile industry (and investors), however, have not been deterred, and many have pointed to a trend in developing lower-cost, more efficient rechargeable batteries.  Lately, it seems, their optimism has been warranted.

Researchers from the University of Illinois at Urbana Champaign have built a prototype battery that  can conceivably reduce charge times down to mere minutes.

Lithium-ion batteries, like all batteries, work by connecting two electrodes through an electrically conductive material — called an electrolyte.   When that battery is charging and discharging, negatively-charged electrons flow between each electrode while positively-charged ions flow to balance out the charges.  As the image to the right shows, lithium has recently become the material of choice due to the amount of energy it can store relative to its weight.  Nickel-metal hydride batteries are still in use, however, and come at a cheaper cost.

The breakthrough in this instance comes from increasing the surface area between the electrodes and the electrolyte: a critical factor in determining the recharging rate.  At the same time, they were able to maintain a large battery volume, a key attribute to storing maximum energy.  The researchers were able to accomplish this by starting off with a material made up of closely packed polystyrene spheres, each about one-millionth of a meter in diameter.  The gaps between the spheres were filled with nickel through a process called electrodeposition.  The porosity of this nickel-layer could be increased using electropolishing, creating a framework conducive for placing electric cathodes.

Both a nickel-metal hydride and a lithium-ion battery were created using this material, and in both cases the area of contact between the nickel, the electrolyte, and the cathodes were greatly increased.   The researchers claimed that they were able to re-charge a lithium-ion battery to 90% capacity in two minutes!  Furthermore, they say the increase in production costs to manufacture such a battery should only be 20-30% higher than current techniques, once these batteries start becoming mass produced.

The Future?

So, will these new batteries revolutionize plug-in cars?  The answer is not so simple.  The huge current that is necessary to charge a battery so quickly would require significant upgrades to a car’s electrics as well as to charging stations.  It is also uncertain whether these faster-charging batteries affect battery life.  These concerns aside, however, this could be a major step in the right direction.  Like we mentioned earlier, charge-times are a major barrier to customer adoption of plug-ins.   Charging overnight is fine — but wasting significant time at a charging station is most likely a deal-breaker.  If advances in battery technology such as this one shatter that barrier, the positives of electric cars might finally outweigh the negatives… which would indeed create a revolution.

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The upcoming Chevy Volt is going to have the ability to communicate with you via an Iphone App.  The application will sync with the Volt’s OnStar system, allowing its owner to monitor everything from the charging schedule to pre-set temperature settings inside the car (!).  A list of the functionalities can be seen below:

• * Display the car’s charging status and schedule charging. There is also an immediate “charge now” override option
• * Display of the car’ state of charge, as well as electric and total ranges
• * Allow the driver to program grid-friendly charging times, so as to charge only when rates are low
• * Give the driver text or email notifications if the car wasn’t plugged in
• * Let the driver remotely precondition the vehicle’s cabin temperature using grid electricity when plugged in, operates both heating and air conditioning
• * Notify the driver if charging is for some reason interrupted, and when its fully charged
• * Display the car’s historic fuel economy performance data in mpg, electric only miles, and odometer reading

Sourced from here.

Other features such as remotely locking and unlocking your vehicle, and sending a request for it to blare its horn loudly to ease location in a crowded parking lot might become available soon, too.    Can anyone think of other possibilities that exist?

In addition to the Iphone, apps will be available for the BlackBerry and the Droid, Google’s open-sourced operating system.

The 2011 Volt is scheduled for release in mid-November.

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Hitachi, Japan’s largest industrial electronics manufacturer, is devoting significant resources to capture the global car battery market.   Already, they are able to boast of the 100,000 hybrid car order that GM has placed for its lithium-ion batteries.  But, of course, that is not enough.   The Tokyo-based corporation is ramping up its capacity in order to accommodate the needs of 700,000 electric vehicles a year, a gain of 600%.

The Nikkei Business Daily has estimated the expansion costs at between $200 and $300 million.   The completion date would be somewhere around 2015, a time when many more plug-in models are set to hit the road.  The announcement is probably designed to instill confidence in electric-car manufacturers that Hitachi is taking its battery division seriously and will be ready and able to meet future demand.

The company plans on producing two new types of lithium-ion batteries for “next-generation” hybrid vehicles.   The design changes will reflect the industry goal of increased power storage with a reduction in weight and size.   And with many adept battery manufacturers all clamoring for the reputation of providing high quality at a discounted price, the increased production is sure to provide Hitachi with the logistical and engineering experience necessary to emerge as a leader.

Hitachi’s other clients for lithium-ion batteries include Isuzu Motors and Mitsubishi.   They are targeting sales of $1.04 billion by the year 2015 — when global sales of electric-car batteries are expected to surpass $6 billion, according to Nikkei.

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The New Mercedes-Benz Supercar

For those with the patience and the pocketbook, a powerful car is about to hit the markets in the year 2015.  Without a doubt, Mercedes-Benz has ambitions to lead several other high-end auto companies, should the race for plug-in automobiles really take off.   To that end, company representatives have announced a  zero-emission supercar, which is a newer version of the SLS AMG,  that will be publicly unveiled on September 15^th of this year.

The development of the car is still a work-in-progress, as revealed by the engineers of AMG. However, such an advanced model could potentially have an impact on multiple fronts, from limiting environmental damage, to reducing breakdown cover costs. The officials let it be known that the same signature gullwing style doors and aluminum-based lightweight body would be offered for the SLS eDrive. Even the interior of the car would be standard with minor changes in the switchgear in order to accommodate the underlying electric driveline.

According to the head of AMG, “The great thing is we haven’t had to alter the styling in any way.” He also pointed out that “The very nature of the SLS, with its sizeable engine bay, sturdy torque tube running back along the backbone of the car and the mounting point for fuel tank, lends itself perfectly to adaptation for electrification.”

The Mercedes-Benz AMG SLS eDrive will be a modified version of the standard rear-wheel-drive SLS.  It will be driven by a total of 392kW, coming from four 98-kW motors powering each wheel, providing a sturdy 649 lb-ft of torque.  By comparison, the SLS, powered by a modified version of AMG’s 6.2-liter V8 engine, provides 571 hp and 479 lb-ft.  The new zero-emission car would also include a new pushrod front suspension compared with the standard car’s double-wishbone arrangement.

The plug-in vehicle will use lithium-ion batteries. As stated, they would require 8 hours to recharge on standard outlets, and 5-6 hours if hooked up to a high-density power source.  Moreover, the fuel tank space behind the seats would be utilized for further battery capacity in the car.  All this means a range between 93 and 112 miles, supplemented by captured brake-energy.  Wolf Zimmermann, the head of SLS eDrive, asserts that the top speed of the car would be 120 mph and it would be capable of achieving an acceleration of 0-62 mph in under 4 seconds.

In the words of Mornhinweg, the ultimate goal of the car is being sporty along with electrification. He said, “The goal is to redefine the one-dimensional way electric cars drive today.”

“We didn’t want to do another concept car without any real relevance to what we’re doing today. Instead, we decided to bring the future to us by applying advanced technology we’d already been looking at to a car we’re just about to launch. “

With an expected release date of 2015, that advanced technology is sure to change in the meantime.  And with a long charge-time, limited electric range, and the hefty price-tag that is sure to be attached to any Mercedes plug-in model, one will wonder if this announcement is just meant to bring attention to its green-credentials at a time when every car company is flouting them.   On the other hand, it is possible that Mercedes really sees potential in the technology.   Even if it is just a marketing ploy, this announcement is a first step in getting acquainted with the engineering challenges that face every electric-car manufacturer.

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The lithium-ion battery cell has emerged as a clear favorite with the plethora of car manufacturers who are announcing their electric ambitions. And as this demand rises, suppliers of battery technology are in a race of their own to provide high-quality, low-cost lithium-ion solutions. Several Asian firms have established dominant footholds in the industry, winning contracts with major auto companies, and they offer a formidable challenge to newer entrants:

South Korea’s LG Chem was the supplier chosen by GM to manufacturer batteries for the upcoming Volt plug-in. The newly formed CODA Automotive (based in California) has a deal in place with China’s Lishen Battery Co., and the popular (in China) BYD line of electric automobiles runs on batteries that are produced by their parent company, BYD Company Limited. Other notable Asian players include Panasonic, NEC and Sanyo Electric, all based in Japan. These companies have established reputations for reliability and their technology is tried and tested.

The Challengers

On the other side of the globe, there is a relentless drive to catch up and surpass. Helping the effort is the $2.4 billion U.S. stimulus program, a large portion of which is slotted for battery development. Ener1, a start-up from Indiana, has recently applied for a $480 million government loan in order to expand their facilities and leverage their proprietary battery technology. The company is already supplying Think Automotive, a Norwegian manufacturer, and they are in preliminary stages of agreements with the Californian carmaker Fisker. What separates their product from competitors includes the chemical coating that they apply to the lithium strips, allowing them to customize the battery performance for various needs, as well as the stacked-design of their battery cells, which their CEO refers to as a “breakthrough”.

Another large American technology company aiming to dominate the market is A123 Systems. They have an edge in that they already have battery plants in Asia and relationships amongst the supply-chain. Now, there are talks of adding new facilities to the U.S. in order to take advantage of tax incentives and geographic benefits. Batteries, which are notoriously heavy, can be expensive to ship, so moving their production close to one’s customers can help lower costs.

The Prize

Numerous smaller firms and research arms across the globe are also in the race. The allure of securing just one contract with a major electric car maker is enough for investors and engineers to pour in vast sums of money, time, and experience.

Market dynamics and product technology make for a complicated and unpredictable future. In order to sell, batteries must deliver on multiple fronts that include price, reliability, range, weight, customization, and overall life. Large auto companies also want a supplier that can deliver on large orders with few defects.

While a true battery breakthrough has not yet occurred, falling prices is an important enough factor to keep demand flowing. Whosoever captures a significant chunk of that demand will earn riches, as well as prestige.

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G

• The new Global Battery Systems Lab is located at the Warren Technical Center campus on the outskirts of Detroit. According to information coming from the company, it cost GM $25 million to construct, takes up 33,000 square feet, and employs over 1,000 engineers. The facility will operate 42 thermal chambers and 160 test channels that will expose batteries to real-world driving conditions and test the limits of their design and capacity. Included in the testing are 32 battery “cyclers” that will continuously charge and deplete battery cells for further efficiency studies. The battery headquarters will most likely be utilized by GM and its suppliers, LG Chem and Compact Power, to perfect the sort of lithium-ion batteries in the upcoming Volt and its successors.

While this new facility sounds like a definite step in the right direction to improve the technology and compete with Chinese battery heavyweights, some of the numbers don’t seem to add up. Firstly, $25 million is a very small number for a state-of-the art lab. To put it in perspective, Apple recently announced that it would be spending $1 billion on a server farm. Second, employing a thousand engineers would be very expensive – certainly exceeding the price tag that was given – and appears to be an excessive concentration in one facility. Additionally, the start date of construction was only last August and there is no word yet if more money is needed to operate and expand the center.

In the meantime, GM has plans to create a battery-focused engineering curriculum at the University of Michigan, around which they plan to construct another battery lab.

Amidst these developments, the speculation that the Volt program might be discontinued is probably going to quiet down, perhaps for good.

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The engine will release less than 50 grams/km.  of carbon dioxide emissions (using the NEDC standard).  According to Volvo, this would qualify it for a “super-credit tax incentive band” in several countries.   There is no word yet whether the U.S. will adopt any super incentives.    Another intriguing feature of this car will be the placement of two battery-charging ports on its exterior:  one at the rear for use with public charging stations, and one at the front for use in homes and garages.

The design and introduction of the new model is being accomplished as a joint project between Volvo and Swedish energy supplier Vattenfall.    Like the Toyota/EDF Energy relationship, Vattenfall will manage the operational aspects of the charging process, providing the infrastructure as well as supplying the needed electricity.   They are also offering customers the opportunity to sign an agreement for renewable electricity sourced specifically from windpower or hydropower, as an alternative to the regular mix of electricity sources.

A demonstration fleet based on the Volvo V70 model will be arriving in the U.S. to promote the technology.   Spokespeople from the company have declared that the base price would be slightly higher than conventional automobiles, but that the range would be “class-leading”.

Unsurprisingly, the battery pack will consist of lithium-ion cells.   The supplier of those cells, at the moment, is unknown.  There are also plans to produce a purely electric car in the future.

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