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Better Place is a venture-backed company based in Palo Alto, Californiamarker that aims to reduce global dependency on petroleum through the creation of a market-based transportation infrastructure that supports electric vehicles.

Better Place is building its first electric vehicle network in Israelmarker, and among its partners has selected Denmarkmarker and Hawaiimarker as the other two test markets due to their small size. The electricity needed will be generated by renewable energy from solar arrays and wind farms. Denmark and Israel have enacted policies, which create a tax differential between zero-emission vehicles and traditional cars, to accelerate the transition to electric cars. Better Place plans to deploy the infrastructure on a country-by-country basis with initial deployments beginning in 2010 and commercial sales beginning in 2012.

The company has said it is in talks with more than 25 additional regions around the world. Australia, Ontariomarker, Oregonmarker, and Californiamarker also have announced deployment of Better Place electric car networks. The Company opened its first functional charging station in Israelmarker the first week of December 2008 at Cinema City in Pi-Glilot, and additional stations in Tel Avivmarker, Haifamarker, Kfar Savamarker, Holonmarker, and Jerusalemmarker are being planned and installed.


The company was publicly launched, as Project Better Place, by Shai Agassi on October 29, 2007. As of April 2009 it has already raised $400 million and several countries and states have offered tax breaks.

In January 2008, Better Place announced a Memorandum of Understanding (MOU) with Renault-Nissan to build the world's first Electric Recharge Grid Operator (ERGO) model for clean transportation in Israel. Under the agreement, Better Place will build the electric recharge grid, and Renault-Nissan will provide the electric vehicles. In 2009, Better Place expects to deploy hundreds of charging stations as the company moves toward wide-scale deployment in 2011. Renault has committed to spend $600 million over three years to develop a car with swappable batteries, in time to the 2011 deployment. Renault will offer electric models of existing vehicles, like the Mégane sedan, but at competitive prices to similar gasoline models.

Cars and batteries

The first prototype cars is the Renault Mégane with a battery instead of a fuel tank and an electric motor instead of an internal combustion engine. The battery is a Lithium iron phosphate ion device. The range of the car running on just one battery is from about to . By replacing the battery at a service station, the range between longer charging stops is limited only by the geographical distribution of the battery-swapping infrastructure.

The second demo car is the Nissan eRogue, an electric car based on the Renault-Nissan Rogue, half way between a sedan and an SUV in size.

The Renault Fluence ZE was announced at the Frankfurt Motor Show on September 15, 2009 as the first electric car to be available on the Better Place network using a switchable battery.

The floor-mounted battery packs in these electric cars are designed to be changed out in only a few minutes, allowing for battery-swap services like those proposed by Better Place and Tesla Motors. Better Place expects battery packs to cost between US 4¢ and 5¢ per mile over their life, provide the cars with a 160 km (100 mi) range per charge, perform for 2000 recharge cycles, and last for 8 years.

Battery-switching stations

Better Place has implemented a battery-switch station (also called battery-swap station) allowing drivers to exchange their car's depleted battery pack for a fully recharged one in under a minute; warehouses manage electric forklifts batteries similarly. With enough battery switching stations, drivers will have less concern about running out of charge and will spend much less time charging on long distance trips. While each exchange station will cost $500,000, Better Place CEO Shai Agassi has said that cost is half the price of a typical gas station.

On May 12 2009, Better Place premiered their battery switching station to the public in Yokohama where BP had been invited by the Japanese Ministry of the Environment. The battery switching station demonstrated was set up similarly to a gas station automatic car wash. The vehicle drove up on a ramp and was aligned on the swapping pad. The battery shuttle then engaged and rose up toward the bottom of the vehicle. It made contact with the battery, released it, lowered it, and moved the depleted battery pack away from the car. The charged battery pack was then inserted. The discharged battery was returned to the charging bay. The battery switch was complete in less than two minutes and the vehicle drove away. The battery swap is designed to require less time than filling a tank of gas. In order to keep electric vehicles in demand, Better Place has started initiatives to keep the vehicles competitive with the other cars on the market. By building infrastructure that makes owning an electric car more practical, they hope to increase demand. This is a central concern many automakers have expressed and addressing that concern will help spur the mass production of electric vehicles.

The first prototype battery switch station demonstrated in Yokohama, Japan on May 14, 2009 was designed by Yoav Heichal, chief engineer for Better Place research and development group.


It has raised funding from various sources including, VantagePoint Venture Partners, Israel Corporation (33% ownership), Israel Cleantech Ventures, Morgan Stanley, Acorns to Oaks II, Esarbee Investments Canada, GC Investments LLC, Musea Ventures, Ofer Group, Vyikra Partners, Wolfensohn & Co. and Maniv Energy Capital.

Better Place announced agreements with AGL Energy and financial advisor Macquarie Capital Group to raise $1 billion (Australian) and begin deploying an electric vehicle (EV) network powered by renewable energy. According to Better Place, their model for sustainable mobility will help Australia move toward oil independence. With the world’s seventh highest per capita rate of car ownership, the country has nearly 15 million cars on the road after adding over a million new cars last year.


In May 2008, the company presented a prototype of its electric car at a press conference in Tel Avivmarker. Shai Agassi estimated that the company's partner, the Renault-Nissan alliance, would likely invest $500 million to $1 billion in developing the swappable-battery electric cars.

Better Place has also announced plans to develop electric recharge grids in the city of San Franciscomarker and the state of Hawaiimarker.

Better Place will work with Australian finance group Macquarie, which pledged to fund the construction of plug-in stations, and Australian utility AGL Energy, which has committed to powering those stations with renewable electricity.

Economic Model

Better Place anticipates implementing an economic model similar to the mobile telephone industry; the initial cost of an electric vehicle may be subsidized by the ongoing per-distance revenue contract just as mobile handset purchases are subsidized by per-minute mobile service contracts. Better Place plans initially to charge US$0.08/mile in 2010, then US$0.04/mile by 2015 and US$0.02/mile by 2020. The electric cars will be sold separately from their battery pack "fuel" akin to the way that petrol cars are sold separately from their fuel. Customers will not be allowed to purchase battery packs; instead, they must lease them from Better Place. The per-distance fees cover battery pack leasing, charging and swap infrastructure, purchasing sustainable electricity, profits, and the cost of investor capital. Better Place has requested that governments mandate the use of international standards and open access to recharge across charging networks to facilitate competing networks. Standardization efforts, however, have not yet yielded consensus. Better Place has displayed Charge Spot charging stations that use a connector with the same pin layout as SAE J1772-2009 but housed in a non-standard, triangular plug. They have also displayed a wall mounted charging station using MENNEKES's IEC 62196 receptacle. Battery pack exchanges outside of Better Place's network will not be allowed and pack standardization efforts have not yet been initiated. Better Place has pre-sold enough contracts to make their first deployed network in Israel profitable at launch.


In March 2008, Deutsche Bank analysts issued a glowing report stating that the company's approach could be a "paradigm shift" that causes "massive disruption" to the auto industry, and which has "the potential to eliminate the gasoline engine altogether." Three months later, the same institution issued a second report, finding “electric vehicles destined for much more growth than is widely perceived”. The same report states that “[i]mprovements in battery technology will allow for increased power, increased electrical propulsion, and bigger gains in fuel economy.”

On June 26, 2008, Shai Agassi testified before the United States House of Representatives Select Committee on Energy Independence and Global Warming, chaired by Representative Ed Markey of Massachusettsmarker. The hearing, titled “$4 Gasoline and Fuel Economy: Auto Industry at a Crossroads,” dealt with the future role of the auto industry and the federal government in fighting gas prices and the fuel economy standards proposed in response to the enactment of the Energy Independence and Security Act of 2007.

Better Place Australia

In Australia a roll out of the network will begin in the major eastern coast cities before being rolled out nationally. It is estimated that 500 charge stations would give comparable coverage to the existing 13,000 petrol stations presently in operation. The total cost of this roll out would be between $1 to $1.25 Billion AUD. Currently Australia spends $20 to $30 Billion AUD on fuel. The roll out of the Australian network is estimated to be 6 months to a year after the roll out of the network in Denmark. The switch to electric transport is estimated to increase the current grid load by 7%.

Similar projects

Many companies, in addition to Better Place, are installing charging station networks. In France, Électricité de France (EDF) and Toyota are installing recharging points for PHEVs on roads, streets and parking lots. EDF is also partnering with Elektromotive, Ltd. to install 250 new charging points over six months from October 2007 in Londonmarker and elsewhere in the UK. Coulomb Technologies has deployed their ChargePoint charging station network throughout the USA. In March, 2009, Tesla Motors announced a partnership to deploy battery swap stations to service their Model S platform cars. The EV Charger Maps project managed by EV Charger News is a volunteer effort that manages a list of charging stations around the country with practical information targeted to electric vehicle owners. Recharging points also can be installed for specific uses, as in taxi stands.

See also


  1. Shai Agassi and the big batteries
  2. PC World interview
  3. TIME Heroes of 2008
  4. Better Place Unveils First Automated Battery Switch for Japan EV Study, Press Release, May 12, 2009
  5. LexisNexis, a division of Reed Elsevier Inc.

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