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Axeon Lands £2.5M Li-Ion Order from Modec for Electric Urban Delivery Vehicle

Axeon Holdings plc has received orders worth £2.5 million (US$5.05 million) for Li-ion battery packs and chargers for the Modec electric zero emission urban delivery vehicle. (Earlier post.)

These new orders are in addition to previously announced orders from Modec worth £3.1 million (US$6.26 million) for development engineering, sodium nickel chloride packs and initial launch quantities of Li-ion battery packs. (Earlier post.) The total order book for production Li-ion for Modec is now 172 battery packs and 172 chargers.

The testing and validation of the production level prototype Li-ion battery pack is nearing completion and initial production ramp-up is expected to commence during October.  Deliveries of the initial orders for Li-ion battery packs and chargers are scheduled to take place during Q4 2007 and into Q1 2008.  Further orders are expected before the end of 2007 to allow fulfillment of 2008 production.

The initial Li-ion battery is rated at 51.2 kWh and provides a range of up to 70 miles on a single charge for the Modec electric zero emissions urban delivery vehicle travelling at its top speed of 50 mph.  During initial testing and evaluation, the Li-ion battery pack delivered approximately 15% more miles per kWh than the sodium nickel chloride battery pack.

As previously announced, Axeon and Modec are also developing a higher capacity pack expected to deliver a range of around 100 miles on a single charge. This 100-mile battery pack is being developed for a start of production during the first half of 2008.



This is really good news. Note the implied kWh price for these battery packs + chargers. $284 per kWh (2500000/(51.2*172). This is by far the lowest price I have heard of for any automotive grade lithium batteries. Altair Phonix is $2000 kWh and the Tesla packs are about $700 kWh (Think ordered 2700 Tesla packs with delivery starting in December 2007. They pay $43 million for the packs indicating a pack price of $16000 for their 23 kWh battery.).

I hope that this is not an error. If the kWh price of automotive grade lithium already is going below $300 this market is going to explode. Possible in less than 15 years we can say goodbye to new cars that are powered only by ICE. They will all be electric with or without range extenders that may or may not be ICE.


Arghh. It was an error I mixed pounds for dollars. The implied pack price is 568 kWh still lower but not below 300 kWh.

Harvey D


Even at $568/KWh (USD) it is a step in the right direction.

Another good new, China is apparently paying $300/KWh for locally built large battery packs for the 3000 +/- electric garbage trucks supposed to be in operation for the summer Olympic of 2008? Is that a special one time price? Who knows.

PHEVs and BEVs would certainly make more economical sense when battery pack price drop below $300/KWh


Unfortunately the prize is higher.
We can deduce from the article that the US$5.05 millions aren´t for all the 172 packs and chargers, because it mentions an "initial launch quantities of Li-ion battery packs" included in a previous US$ 6.26 millions order with another items and then says "the total order of Li-ion for Modec is now 172 packs and chargers".


And this is the barest top of the tip of the berg. Once mass marketed PHEVs hit the streets the cost per kwH will plunge significantly - probably starting first quarter 2009.


Once GM and the rest start ordering tens of 000s of LiIon packs - the price of Li will rocket and the supply dry up. It can't keep up with demand now.

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