Over 50 East Asian manufacturers make pure electric cars and they have very few sales. Price can be a problem and having almost nowhere to plug them in is a severe problem since most East Asians cannot plug them in at home. Indeed, most live in apartments. It may therefore seem strange that a Japanese company is investing in an even more expensive pure electric car Think from Norway made by the eponymous Think that has changed hands several times and failed to establish substantial sales. However, there is logic in this. For example, Think vehicles are fully approved to Western crash testing standards and the company now has a leadership position in certain subsystems.
This month, Japanese manufacturer Itochu has made an initial $5m investment in Think, expanding their partnership to market and distribute the Think City model and drive system in Asia. Itochu explains that it took a stake in Think to formalise the partnership, which is intended to further develop marketing and distribution opportunities for Think's urban vehicle and drive-train business lines in East Asia. It points out that this initial investment is characteristic of its investment strategy, which involves taking toehold positions and increasing equity stakes on reaching certain milestones.
Richard Canny, CEO of Think, comments that "This strategic alliance represents more than selling the Think City in Asia; Itochu will also be marketing Think's electric vehicle drive system in the business-to-business sector, on the heels of recent purchases by Japan Post and Mazda. The latest generation drive system from Think - the G4 electric drive vehicle controller, is now in full-scale scale production in Europe and ready to be commercialised. Itochu's involvement as an industry heavyweight can only accelerate the growth of this new business line in new and exciting ways."
The two companies have been in a cooperative relationship since 2009, through a number of demonstration projects in association with Think's battery partner, Nasdaq-listed Ener1, which makes the EnerDel lithium-ion traction battery. The projects have served as valuable test-beds to validate how battery, vehicle and grid technology function together, says the company. Itochu has been an equity investor and strategic partner of Ener1 since 2003.
Ener1/EnerDel has more advanced lithium-ion battery technology than most competitors, using the flat pouch assembly rather than cylindrical battery technology, in some cases lithium titanium oxide anodes instead of the old carbon type and lithium manganese spinel cathodes rather than the more chemically unstable and expensive lithium cobalt oxide. It has a relationship with Volkswagen but is not yet a leader in order taking or variety of its traction battery customers eg niche marketing.
A demonstration project has taken place using Ener1 battery and Think drive-train technology, to electrify a fleet of vehicles by Mazda, in which Itochu has a minority equity stake. The trial, involved convenience store chain Family Mart, which Itochu is also a major shareholder in. A fleet of Mazda 2 vehicles with Think drive trains and EnerDel batteries was electrified for trial in the project in under three months.
"The partnership was already in place informally, as seen in the success we have had in ventures such as the Tsukuba Green Crossover Town sustainability project in association with Mazda," reported Masahiro Okafuji, president and CEO of Itochu.
Itochu is able to stimulate demand for products through strategic investments in car companies, renewable energy and grid storage applications, having built the supply side of its company over a period of years, with investments in mining, materials and equipment companies. It plans to establish a US production facility in 2011 in Elkhart County, Indiana, and is also developing operations in Asia. It continues to manufacture the Think City in Finland with manufacturing partner Valmet Automotive.
Scandinavian electric vehicle maker Think and its Swiss distribution partner M-Way are targeting the tourism sector by deploying a fleet of 60 vehicles in the Swiss Alps, in partnership with eco-tourism company Alpmobil.
The scheme will offer visitors to the Goms and Haslital resorts the chance to use the carbon-neutral vehicles while staying in the area, through making the electric vehicles available in 30 locations.
