Lessons the U.S. Can Learn from Europe’s Commitment to the EV

The new administration has shown us just how supportive the federal government would like to be in jump starting America’s clean energy economy, making their foray into protecting and incentivizing American-based clean energy and battery-powered electric vehicles. In this all-important mission, we can learn so much by studying our European counterparts, as they are ahead of us in this process, especially when it comes to electric vehicles (EVs).

Unlike in the U.S., Europeans have embraced the EV, and for many reasons. For decades, gas has been 5-10 times more expensive in Europe and consumers there want more efficient driving and expect swift progress. Led by that popular support, government policies strongly support manufacturers, encourage consumers to buy EVs, and support installing the infrastructure to enable the use of EVs. Automotive OEMs (Original Equipment Manufacturers) are thus determined to meet the stringent requirements issued by European governments.

Europeans are also adopting advanced EVs because they are more focused on driving efficiency than luxury or performance. To that point, OEMs recognize that there is real potential for small cars, bikes, and scooters for those in cities that commute less than 30 km (or 20 miles) per day.

Governments are developing regulations that mandate all manufacturers, including OEMs, to reduce their dependency on foreign oil and reduce carbon emissions. So OEMs are reacting by putting in place programs for hybrid electric (HEV), plug-in hybrid electric (PHEV), and battery electric vehicles (BEV). This is no small effort as European automotive OEMs actually produce more than the Big Three combined, or all of the OEMs of Asia. Public transportation in Europe has quickly electrified its fleets to ‘return to base’ hybrid buses while doubling as a laboratory to fine-tune many aspects of the future personal EV.

In that vein, governments and auto companies are seriously considering setting up battery manufacturing facilities. In France, Spain, the United Kingdom, and Italy, representative national auto companies have had closed-door talks with government officials that have focused on the development and deployment of advanced electric vehicles. As a result, battery companies must consider opportunities to develop manufacturing plants in the U.S. and Europe.

Valence has focused on Europe lately to design, manufacture, integrate, and engineer our lithium phosphate solutions at higher volumes than any of our competitors. While we remain focused across the sea, the billions in the recently passed American Recovery and Reinvestment Act of 2009 are encouraging for American-based companies such as our own.

Valence, in particular, believes it is in a very unique position to put a plant in the U.S. due to the company’s mature manufacturing processes, which are easily scalable and transferable, and unlike most of its competitors who are only shipping prototypes, the company is shipping complete energy systems up to 700 volts. Valence’s patent estate allows total freedom to operate worldwide so that if we were to build a facility in the U.S. or in Europe, we could put it on the ground faster, it would be more stable, and it would yield more results than a company just starting to develop their initial technology.

The global economic downturn has affected everyone in ways that we could never anticipate. The current administration’s green energy mantra can lead America back to its global leadership role and wean us from the credit freeze and energy dependence. But in doing so we must pay close attention to similar European efforts that have both worked and failed, so that we can adopt the most effective and expedient initiatives here in the U.S.