As several electric vehicles are entering, or at least are poised to enter global markets, Israel is establishing itself as an early leader in electric vehicle adoption. Israel is on pace to have 50 percent more charge spots and battery swap stations than fellow electric vehicle leader, Denmark, by late 2011.



With electric vehicle technology beginning to trickle into showrooms around the world, few nations are taking the necessary steps in order to facilitate the conversion from petroleum powered vehicles to electric powered vehicles. In some cases, nations find the switch to electrically powered vehicles to be motivated by environmental concerns, while others, like Israel, see the need for oil independence as a necessity for national security.

Some nations, like the United States, use taxpayer funds to subsidize the sale of gas-electric hybrid and pure electric vehicles in an effort to make the technologies more affordable, and in turn reduce emissions and foreign oil dependence. Government agencies have also imposed taxes, such as the "gas guzzler" tax in the U.S., and a 180 percent tax on internal combustion engines in Denmark.

California first attempts, then fails to mandate zero-emission vehicles
In 1990, the state government of California attempted to force automakers to offer zero-emissions vehicles - the mandate later flopped and the industry quickly forgot. Fast forward to January 2008, and Israel's national government took a major step toward drastically reducing and eventually eliminating oil dependence by launching a massive national initiative to move drivers towards electric vehicles.

Israel takes a page from California's book but rewrites it completely
Israel's plan is far more comprehensive than California's trial. Israel's plan aligns policy makers and a major automaker - Renault-Nissan - with California-based private firm Better Place in an effort that is poised to build hundreds of thousands of electric charging stations across the country. Better Place recently secured an additional $350 million in funding from HSBC, Morgan Stanley and other investors, putting total valuation at $1.25 billion, according to a Better Place release.

Israel's President, Shimon Peres, spoke of the initiative as "an experimental lab, a pilot project, before it's applied to other, bigger industrialized nations," during an interview with TIME magazine.

The man behind the plan
Although Israeli President Shimon Peres is often credited with beginning the shift to electric vehicles in Israel, the plan first began as a result of a paper written by Shai Agassi, a former SAP executive and founder of Better Place. Agassi, an Israeli native currently residing in the U.S., wrote a paper about the need to switch to electric vehicles as part of the World Economic Forum's Young Global Leaders forum. Agassi's paper impressed Peres, who encouraged him to start a business devoted to making the electrification of automobiles possible. Peres also introduced Agassi to key auto executives, including Renault-Nissan CEO Carlos Ghosn.

Although not entirely unique, Agassi's plan is to offer a widespread network of battery exchange and charging stations in order to give owners of electric vehicles the ability to enjoy the same range capabilities - albeit with battery swapping - as their heavier polluting gas-burning counterparts.

"To do that you need a new system that takes care of a holistic approach not just a car, because much like gasoline cars won't work without gas stations," Agassi explained to CBN News. "Electric cars won't work without the right infrastructure to make them convenient and affordable for consumers."

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The idea of having public and readily available electrical outlets capable of fast charge times is already being put into action in isolated instances in developed nations, but few nations have begun to develop wide-spread networks. Agassi's effort in Israel is set to make the nation the first in the world to have a nation-wide electric grid for electric vehicle charging.

Also key to Agassi's plan is the concept of leasing batteries to owners, which in turn allows vehicle selling prices to remain in line with gasoline powered models, as well as offering the ability for drivers to swap batteries at various Better Place locations in order to avoid charging downtime during extended travel. This step is essential given the current limitations of battery capacity and electric vehicle efficiency, but the cost and risk associated with developing the network has kept most governments and automakers from making use of similar concepts. Nissan's plans with the upcoming pure-EV Leaf would be an exception to that rule, as they closely mirror the plans laid out by Agassi.

Agassi hopes to add plug-ins to as many as 500,000 of Israel's estimated 3-4 million parking spots, in addition to adding Better Place battery swapping stations around the country. Better Place has already begun taking orders and placing sales, with a single dealership near Tel Aviv recording an average of over 50 sales per day.

Agassi also told Time that he is in talks with representatives of 15 other countries, including China, for similar plans.

The Lithium market heats up by cooling down
A key factor in the practicality of electrifying vehicles is finding a way to offer batteries that can provide sufficient range, while still remaining affordable. The key ingredient in most batteries used to power hybrids and electric vehicles is lithium. In January, Leftlane reported on Toyota's securing of a major lithium mining operation in Argentina to help fuel the demand for batteries that it hopes to require in coming years.

Roughly 60 companies have started feasibility studies in lithium-rich regions such as Argentina, Serbia and even the U.S. state of Nevada - all told, those projects are said to possess roughly one billion dollars worth of lithium projections. "There is a sea change under way," said James D. Calaway, chairman of Orocobre, to the New York Times. "We are at the front end potentially of a very significant increase in the demand for lithium for the emerging electric transportation sector."

The projects in the aforementioned countries are not the only major sites for lithium, with Bolivia and Chile also major producers of the mineral, according to the New York Times. Another possible source in the future would be the recycling of batteries, with some estimates suggesting up to 50 percent of the lithium can be re-used from used batteries. The combination of new sources of fresh lithium and creative recycling of the mineral will help to drive costs down and continue to increase the practicality of EVs as primary sources of transportation.

Battery prices drop far ahead of previous forecasts
Following news that the price of lithium has dropped 20 percent per ton, Deutsche Bank, one of the leading financial institutions in the world, released a report that suggested a recent drop in the price of batteries used for automotive applications.

Deutsche Bank first reported in November 2009 that the price of advanced lithium ion batteries would likely decline by 25 percent in five year, and 50 percent in 10 years, in addition to battery capacity doubling in seven years. The bank's latest report, released this week, suggests that the marketplace has already outpaced their projections and dropped average prices by 30 percent for orders placed in 2011-2012. This increased pace of lithium ion battery price decline could mean substantially increased viability for electric vehicles as consumers will be able to justify the added costs with fuel savings much sooner.

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