ZAP makes battery deal

July 24, 2007 - Exclusive
By David Ehrlich, Cleantech Group

Electric car maker ZAP (BULLETIN BOARD: ZAAP) is reaching across the Pacific for some new batteries, making a deal today with Chinese company Advanced Battery Technologies (BULLETIN BOARD: ABAT) for $5.2 million worth of polymer lithium and nano batteries.

This is Advanced Battery Technologies' first order from a U.S. company. Founded less than five years ago, Advanced Battery Technologies makes batteries for electric vehicles, cell phones, notebook computers and other electronic devices.

"We're excited about the huge opportunity for our products in the U.S., as companies like ZAP proliferate to meet the growing demand for zero-emission vehicles," said Zhinguo Fu, Advanced Battery chairman and chief executive officer.

ZAP, founded in 1994, has sold over 100,000 cars, trucks and scooters around the world, making a recent push for sales in the States with over 20 licensed dealers in the U.S. so far.

While ZAP is known for its compact and European-looking cars and trucks, the new batteries could be destined for use in a new high-performance line the company is making with Lotus. In January, ZAP said it would start work on a sporty SUV called the ZAP-X, based on the Lotus APX (see Look out Tesla... ZAP building electric supercar).

Last month, ZAP announced plans for a smaller roadster, with a top speed over 100 miles per hour and a range of 100 miles per charge, based on technology similar to the ZAP-X (see ZAP to introduce brother of ZAP-X, and sooner). ZAP expects a $30,000 sticker price for the new car.

The competing roadster from Tesla Motors goes 0 to 60 in about four seconds, has a range of 250 miles, and a top speed of over 130 miles an hour. And a price tag of $98,950. For the basic model.

ZAP's current model car and truck, both called the XEBRA, sell for about $10,000 each and travel at up to 40 miles per hour. ZAP is marketing them for government and municipal fleets as well as short-distance commuters.

Advanced Battery's technology will have to live by high standards if it's destined for the new cars. ZAP claims the ZAP-X will charge up in only 10 minutes and get a range of up to 350 miles, claims that were previously made by Altairnano (see Altairnano power play).

While no deal has been made between ZAP and Altair, Altair CEO Alan Gotcher told Cleantech.com in February that the two companies had been in talks for well over a year.

Advanced Battery, which maintains R&D and manufacturing facilities in Harbin, China, and administrative offices in New York, has been looking to build its U.S. shareholder base.

The company markets its products in southeast Asia, mainly in China, Taiwan, and Japan.

Although ZAP's order is the company's first deal with a U.S. company, it's not the first time Advanced Battery's products have hit the U.S.

In May, the company shipped its first batch of portable recharging units to its sales agent in the States. The company sent four models—two different solar rechargers, a cell phone power supply and a laptop computer power supply.

Batteries aren't the only piece of equipment needed for ZAP's new high-performance cars. The U.K.'s PML FlightLink Ltd. will have a hand in the speedsters, with ZAP using PML's advanced wheel motor technology (see PML FlightLink gets wheel).

ZAP announced the deal with PML in May for an initial order of about $10 million in wheel motors.


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Cleantech developments making news in the past 24 hours

Submitted by David Ehrlich on July 27, 2007 - 4:46am.

ZAP's XEBRA truck made the news this week, driving to the 100-mile mark on a single charge in tests in Denmark.

 Technology firm Lithium Balance is testing its battery management system on two of the electric trucks as part of a distribution deal it signed with ZAP in January.

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