RegGuheert said:
GRA said:
At the moment, I see just two areas of natural demand growth for affordable BEVs, where they are both cost-effective and extremely well-suited: urban car-sharing, and urban delivery. Everything else will require considerable battery price/density and infrastructure development to open up more mainstream usage.
That statement seems rather myopic to me.
IMO the Nissan LEAF, as designed and built today, is well-suited to a huge market of commuters driving 20-40 miles per day. Guess what? That seems to be who is buying them! And there is still a gigantic untapped market of people with similar commutes who either have not needed a new car, do not know EVs exist, are in a wait-and-see mode or simply haven't figured out that BEVs are the best fit for them. Those people will provide ongoing, growing demand for EVs over time. As range steadily increases, so will the size of this market demographic. As gasoline prices rise and battery prices drop, shorter commutes will also qualify.
I don't see the fit in either of the two markets you have mentioned, primarily because the daily driving time for a BEV is low and the recharge time is much longer than the driving time. Sure, you can quick-charge the LEAF, but if you do that many times each day, the battery will wear out too quickly. Perhaps this is why we do not see a huge number of BEVs selling into these markets.
There are government subsidies supporting both ICEVs and BEVs. The difference being that EVERY ICEV is heavily subsidized by the government, but not all BEV sales are subsidized. I think the case could be made that for many vehicle needs in the U.S., an ICEV would make very little sense in an environment with no subsidies. The same was true for photovoltaics. Because of the massive built-in subsidies for incumbent technologies, PV technology had to advance way beyond the natural break-even point in order to become affordable.
We obviously disagree on many points. IMO, BEVs with the range of the Leaf are too short-ranged to be acceptable to mainstream users, who are unwilling to accommodate themselves to the needs of the car in order to make their commute, i.e. they won't be willing to slow down/alter their commute route, nor will they be willing to do without uninhibited use of climate control or other power-using accessories. Battery prices are too high and likely to remain so for some years to allow adequate range in a car with mass-market acceptability. I think it will take something like the government's recently announced research program to triple battery energy-densities while simultaneously decreasing price/kWh by 1/3rd within 5 years, before the price/performance will be acceptable to the mainstream.
Obviously, the size of the niche in which these cars are suitable will slowly increase as battery prices decrease incrementally and gas prices rise, but I believe that only a very large battery improvement, say at least double the range at an MSRP of no more than $30k, will make the cars mainstream. Tesla has shown that it's possible to build a car that will eliminate any range anxiety in day to day driving, but the price has to come down by around 2/3rds before they will be mainstream affordable.
As to the Leaf's range being adequate today, it's still early adopters, and most of the recent lessees/buyers have demonstrated that the price is too high without Nissan incentives on top of the government ones. Until Leaf-type range increases to where almost nobody ever feels any range-anxiety in their daily driving, despite driving however they normally do and with free use of heat/defrost etc.,
BEVs won't be mass-market. Which is why I've said repeatedly that I think we'll only get to BEVs via PHEVs.
As to the fit in car-sharing and urban delivery, you can put enough battery in vehicles to make it possible for them to do their daily driving range with today's technology, cost-effectively and I believe, without subsidies. Businesses pay far more attention to the numbers than most private individuals, and the cars can be successful in those niches _now_, building a quiet groundswell of support for them without all the partisan political B.S.
As for the private individuals, I believe it best for the technology in the long-term to let the market grow more slowly and organically, and mainly from the top down. The initial pace is slower, but there's far less backlash when the excessive promises of the enthusiasts and promoters prove to be empty, and the vehicles get bought because they are the best fit for the job, not because of some political skewing of the playing field that could be reversed tomorrow.
Odd that you mention PVs, since my business involved designing and selling PV systems in the early nineties, and I suspect I may have more experience of the economics of that business than you do. It was that experience, and watching what happened to solar-water heating in the '80s when the incentives ended, that conditions my thinking today. Just because a technology may be superior doesn't mean it will sell; to take PVs as an example, owing to massive over-production capacity due to the Chinese government subsidizing production plants, world PV prices have plummeted in the past couple of years (and the U.S. has won a dumping judgement against China), to the point where they are cost-effective in many areas even without subsidies.
But they still aren't being installed in massive numbers on existing homes even in the very solar-supportive Bay Area, because the pay-back period is longer than most people are willing to put up with, and then there's the hassle factor. That last may be the most important of all; after all, solar water heating has been a cost-effective no-brainer for the last couple of decades, but how many systems do you see on people's roofs?
Now, this year, owing to similar Chinese and other government subsidies of battery plants as well as the over-optimistic forecast of BEV adoption rates by many entities, battery prices are likely to slump in the short-term, but there will be a massive shakeout and consolidation in the industry - we've already seen this with A123/Enerl. Unfortunately, many of the companies most heavily into BEVs, such as Nissan, make the batteries themselves or have joint ventures, so they're unlikely to benefit to as great an extent as a company that can put their battery needs out for bid, and watch the desperate companies offer below-cost prices just to keep their plants open while they hope for better times (i.e. the other guy goes out of business).
Summarizing, the tech isn't yet ready for mainstream prime time, and won't be for some years yet, so let's stop pushing it as if it is, use PHEVs and HEVs to fill the gap, and slowly grow the BEV market until the batteries we need are here.
[1/8. Edited to clean up some awkward phrasing. Edited section in bold]