11. A Decade of Growth Light-Duty Hybrid Vehicles Source: U.S. Department of Energy
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13. Trucks will be Electrified Before Cars “ Electric drive medium- and heavy-duty trucks, buses, and non-road vehicles can saturate market niches earlier than electric drive passenger vehicles at a much lower level of production (3,000 to 5,000 vehicles per year). With these production volumes, the vehicles battery costs will be reduced significantly. Additionally, with the higher fuel savings of these vehicles they will achieve cost competitiveness with diesel vehicles sooner than in the light duty market.” - California Energy Commission, “2010-2011 Investment Plan for the Alternative and Renewable Fuel and Vehicle Technology Program,” February 2010
15. Battery Costs are Key “ CEC recommends manufacturing incentives of $7.5 million to $10 million…this funding will likely result in 20,000 to 30,000 electric vehicles sold per year within 5 years...At these levels it is expected that battery cost will drop by up to 50% from current market rates.” - California Energy Commission, “2010-2011 Investment Plan for the Alternative and Renewable Fuel and Vehicle Technology Program,” February 2010
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20. Simplicity = Logic (= Market Acceptance) Typical Series Hybrid Drive System Electric Drive System “ Simple Simon™” Drive Motor Inverters Motor Auxiliary Battery Pack Accessory Subsystem Drive Motor Inverters Generator Motor Auxiliary Battery Pack Braking Resistors Electric Generator Diesel Engine Fuel System Engine Cooling, Exhaust, etc. Accessory Subsystem
27. Target Markets U.S. Class 8 Trucking Only * Assumes long-term average sale price of $250,000 per vehicle † Assumes long-term average sale price of $20,000 per vehicle Annual Estimates Vehicle Type $500 million $6.25 billion 25,000 TOTAL $20 million $250 million 1,000 Construction and other vehicles $40 million $500 million 2,000 Tactical military trucks $200 million $2.5 billion 10,000 Local delivery trucks $200 million $2.5 billion 10,000 Refuse and recycling trucks $40 million $500 million 2,000 Port trucks Potential Revenue – TransPower Integration IP Only † Potential Revenue – Drive System Kits* Addressable Unit Sales