Better Place Bankruptcy is a Sad Day for Electric Car Industry

It is a sad day. Better Place’s battery swap technology is an obvious and practical technological solution to a basic problem of physics and electrochemistry, it is both dangerous and difficult to rapidly charge a chemical battery. While we wait for supercapacitors and methanol fuel cells, Better Place had a solution that worked well with proven technology. Last summer a Renault Zoe using Better Place technology set a 24 hour electric car distance record.

But anyone who follows technology should understand that economic and social factors often get in the way of steady technological progress. Just look at automobile history:

The rechargeable battery electric car was invented by French physicist Gaston Planté in 1856.  In 1878, a Methodist minister named John Wesley Carhart proved that a steam-powered car he named the “Spark” could travel long distances under its own power.

But when it frightened a valuable horse belonging to industrialist J.I. Case to death, it was banished from the city and the world would have to wait until 1886 when Karl Benz and then later Henry Ford would bring back an idea whose time had finally come.

Similar examples of technological regressions and reinventions can be found in the history of electric lighting. Better Place had a better idea for electric car charging, and if we can learn anything from history– most good ideas eventually see the light of day.

Israel’s pioneering electric car company, Better Place filed for bankruptcy on May 26, 2013— six short years after its founding by former SAP executive Shai Agassi and only one year after Better Place began commercial operation in Israel. The company filed a motion with the Lod district court for an orderly dissolution to help protect employees after depleting nearly $850 million of investment money.

In an announcement on their corporate website, Better Place’s board of directors were quoted as saying, “This is a very sad day for all of us. We stand by the original vision as formulated by Shai Agassi of creating a green alternative that would lessen our dependence on highly polluting transportation technologies.

“While he was able with partners and investors to overcome multiple challenges to demonstrate that it was possible to deliver a technological solution that would fulfil that vision. Unfortunately, the path to realizing that vision was difficult, complex and littered with obstacles, not all of which we were able to overcome. The technical challenges we overcame successfully, but the other obstacles we were not able to overcome, despite the massive effort and resources that were deployed to that end.”

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Brian Nitz
Author: Brian Nitz

Brian remembers when a single tear dredged up a nation's guilt. The tear belonged to an Italian-American actor known as Iron-Eyes Cody, the guilt was displaced from centuries of Native American mistreatment and redirected into a new environmental awareness. A 10-year-old Brian wondered, 'What are they... No, what are we doing to this country?' From a family of engineers, farmers and tinkerers Brian's father was a physics teacher. He remembers the day his father drove up to watch a coal power plant's new scrubbers turn smoke from dirty grey-back to steamy white. Surely technology would solve every problem. But then he noticed that breathing was difficult when the wind blew a certain way. While sailing, he often saw a yellow-brown line on the horizon. The stars were beginning to disappear. Gas mileage peaked when Reagan was still president. Solar panels installed in the 1970s were torn from roofs as they were no longer cost-effective to maintain. Racism, public policy and low oil prices transformed suburban life and cities began to sprawl out and absorb farmland. Brian only began to understand the root causes of "doughnut cities" when he moved to Ireland in 2001 and watched history repeat itself. Brian doesn't...

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