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ENERGY

Electric cars fail to gain traction in Germany

Germany plans to have one million electric vehicles on its roads by 2020, but so far that goal seems remote as the nation's motorists have shown little love for the quietly humming vehicles.

Electric cars fail to gain traction in Germany
Photo: DPA

The number of electric vehicles registered in Germany is just some 7,000.

But Chancellor Angela Merkel put on a brave face in light of the statistics,

speaking this week at a government-organised international forum in Berlin, where she affirmed that she is a believer in electric mobility.

“Our plans are ambitious,” she conceded about the one-million goal pronounced by her government in 2009. “But we have a good chance of sticking to the timetable.”

Her government has spent almost €1.5 billion ($1.9 billion) to subsidise research and development in electric mobility and is promoting the models by scrapping car registration tax for the first 10 years.

However, unlike neighbouring France, Germany does not offer bonuses for the purchase of electric vehicles.

Electric cars produce no exhaust pipe emissions and can help clear the air in congested cities, while their carbon footprint ultimately depends on the type of energy used to charge their batteries.

Problems so far include the high cost of the batteries, usually lithium-ion types, and limited networks of charging stations, which make drivers fear being left on the side of the road with dead batteries.

After Japan’s 2011 Fukushima nuclear accident, Merkel rang in an ambitious energy transition away from fossil fuels and nuclear power towards renewables such as wind, solar and biofuels.

Speaking on Monday, she said the push for electric cars would dovetail with that plan, to ensure that the power that drives electric cars is produced from clean, alternative energy sources.

She said electric cars could be a “core sector of our industrial production,” with the auto sector making up one quarter of Germany’s exports. But so far Germans, used to putting their gas pedals to the floor on the famous autobahn highways, have been slow to accept electric cars.

In the first four months the year, only about 1,500 electric cars were newly registered, after a total of about 3,000 last year. There are also 65,000 registered hybrid vehicles with both electric and fuel engines.

Henning Kagermann, coordinator of the Platform for Electric Mobility that evaluates the electric car strategy, said that, under current conditions, 600,000 electric vehicles is a more realistic figure for 2020.

“Electromobility is treading water,” said Ferdinand Dudenhöffer, director of the automotive research centre of the University of Duisburg-Essen.

He said so far the market share of electric and hybrid cars is just 0.13 percent, calling it “less than a niche of a niche market.”

But proponents say the boom is just around the corner. German carmakers plan to launch about 15 electric car models by late 2014, with plans to move into mass production by 2017.

Over the next three to four years, German industry is set to invest about €12 billion to develop alternative fuel engines.

VW chief Martin Winterkorn — whose company this year launches its new electric Golf — said at the weekend that the government must help by improving infrastructure, such as a network of charging stations and incentives such as electric-car-only lanes.

In comments to the newspaper Bild am Sonntag, he said the one-million goal was realistic if prices fall with mass production, adding: “I am convinced

that that can happen.”

Transport Minister Peter Ramsauer also insisted “the government sees no reason to step back from the goal of one million electric cars by 2020. The first steps are usually the hardest, but sales will increase rapidly.”

Philippe Varin, chief executive of PSA Peugeot Citroen, said “it will be a gradual process over 10 years” to convince consumers to embrace first hybrids and plug-in hybrids and finally 100 percent electric vehicles.

AFP/gfb

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BUSINESS

Norwegian battery start-up Freyr demands subsidies to complete factory

The Freyr battery start-up has halted construction of its Giga Arctic factory and demanded additional government subsidies, Norway's state broadcaster NRK has reported.

Norwegian battery start-up Freyr demands subsidies to complete factory

Jan Arve Haugan, the company’s operations director, told the broadcaster that the company would not order any more equipment until Norway’s government committed to further subsidies. 

“We are holding back further orders for prefabricated steel and concrete pending clarification on further progress,” he said. “We are keen to move forward, but we have to respect that there is a political process going on, and we have expectations that words will be put into action.” 

Freyr in April 2019 announced its plans to build the 17 billion kroner Giga Arctic in Mo i Rana, and has so far received 4 billion kroner in loans and loan guarantees from the Norwegian government. It has already started construction and hopes to complete the build by 2024-2025. 

Haugan said that the enormous subsidies for green industry in the Inflation Reduction Act voted through in the US in 2022 had changed the playing field for companies like Freyr, meaning Norway would need to increase the level of subsidies if the project was to be viable. 

Freyr in December announced plans for Giga America, a $1.3bn facility which it plans to build in Coweta, Georgia.   

“What the Americans have done, which is completely exceptional, is to provide very solid support for the renewable industry,” Haugen said. “This changes the framework conditions for a company like Freyr, and we have to take that into account.” 

Jan Christian Vestre, Norway’s industry minister, said that the government was looking at what actions to take to counter the impact of the Inflation Reduction Act, but said he was unwilling to get drawn into a subsidy battle with the US. 

“The government is working on how to upgrade our instruments and I hope that we will have further clarifications towards the summer,” he said.

“We are not going to imitate the Americans’ subsidy race. We have never competed in Norway to be the cheapest or most heavily subsidised. We have competed on competence, Norwegian labour, clean and affordable energy and being world champions in high productivity.” 

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