A $5600 EV Sedan With 110-Mile Range Selling Like Crazy

A $5600 EV Sedan With 110-Mile Range Selling Like Crazy

Last year, Chinese auto manufacturer SAIC-GM-Wuling Motors introduced its new Hongguang Mini EV that could dramatically increase the market for EVs.  In January, sales of the budget electric car in China (25,778) were around double those of the Tesla Model 3 (13,843) and according to some analysts could become the second most-sold EV worldwide next to the Model 3.  Total sales since its July 2020 introduction have topped 175,000.  This latest Mini EV claims to get 8 miles per kWh compared to the 4 miles/kWh in a Tesla Model 3.  

This new model could be a game-changer.  It is comfortable for two, can hold 4 in a pinch, is a hatchback with a lot of interior room, has a top speed of 62 mph and has a range up to 110 miles in the extended version.  It is a pretty convenient commuter car, not so much a highway car.  Its price is particularly impressive because it is half what the same manufacturer had been charging for its smaller and much less capable Baojun E100 ($9275 for the long-range model vs. $5600 for the new full-feature long-range Mini EV).  The significance of it goes beyond this one model.  Probably this is the first in a new line of better economy EVs coming from SAIC-GM-Wuling, the largest auto manufacturer in China, as they bid to become the #1 EV company globally.  

If the Mini EV were made in Europe to meet all requirements there, the price is estimated to be over $12,000, still an attractive number.  

You can read more about this development in this article from the BBC and from Wikipedia.  

Photo by David290 wikimidoa Commons

Photo by David290 on Wikimedia  This file is licensed under the Creative Commons Attribution-Share Alike 4.0 International license.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, 

Moss AdamsPowerSoft.biz, Greenberg Traurig, Momentum,

College of Engineering & Computer Science at Sacramento State

Improve Your Startups Chances with Cleantech Open

Improve Your Startups Chances with Cleantech Open

Since its founding in 2005, the CleanTech Open has been a significant resource for startups looking to upgrade their business skills and give them exposure to a bench of experts, mentors, and investors.  Participating in the CTO program more than doubles the chances of success for a startup.  The CTO programs begin with applications in the Spring and end with awards in November.  Ken Hayes, the National CEO for the Clean Tech Open, in our March 4 Perspectives discussion presented why startups should apply and how to do it for the 2021 cycle.  Each year they accept 100 companies.  The deadline is April 18.  You can apply by clicking here.

The CTO is intended for startups at the pre-revenue, pre-seed investment level.  They provide a window to the much larger world of cleantech venturing and provide access to over 1000 volunteers and coaches and a “network of networks”.  They are very good at arranging “speed dating” with investors at their Showcase each fall.  The core of their program is the 12-week training program, educating startup teams on the Lean Business Canvas Model and coaching them in creating a fundable business plan.  The national $50,000 first-place winner from last year was Coreshell Technologies in Berkeley.  There are also many regional competions that precede the big national runoff, with more prizes offered there.  In the Western Region which includes California, the Clean Tech Open is hosted by the Los Angeles Cleantech Incubator or LACI as the CTO Partner.  

In 15 years the CTO has educated over 1600 startups, that have raised a combined total of $1.2 billion in investment.  Among those still moving forward is Adura Technologies, a winner from our very first CleanStart competition in 2006.  We operate as a feeder to CTO and get companies started on a path that will make them more competitive by the time they apply.  We also help companies enter the CalSEED Concept Award competition, which gives teams a no-cost ticket to enter the CTO.  Otherwise, making an application will cost $75 and then another $1350 if a team is accepted into the program. 

Ken Hayes gave a lot more hints on how to do well in the CTO and his entire discussion is recorded and available below.  Make sure to check out and subscribe to our social media channels.

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, 

Moss AdamsPowerSoft.biz, Greenberg Traurig, Momentum,

College of Engineering & Computer Science at Sacramento State

LoanPal and AQUAOSO Join the Funding Bonanza

LoanPal and AQUAOSO Join the Funding Bonanza

We might exceed $2 billion in funds raised for our cleantech companies this year.  If so, this region would represent a significant fraction of all the money raised in cleantech deals in the US.  That would undoubtedly raise eyebrows.  

The first quarter has been great for 4 companies in raising money so far this year.  We have written about Origin getting $925 million in new investment, and Infinium raising an undisclosed but likely substantial amount.  Now Hayes Barnard and the team at LoanPal in Roseville have gotten $800+ million in private equity for their business financing of energy efficiency and solar on homes.  Hayes had created Paramount Solar in 2003 doing financing and installation.  He sold that business in 2013 to Solar City and the team stayed on for a while.  After the merger of Solar City with Tesla, the team apparently decided they had come up with a pretty good financing vehicle and recreated it in 2018 in LoanPal.  What they do is provide a platform to arrange for loans and then assemble them in packages that are sold off to investors, recycling the money back into more loans.  Over 12,000 sales professionals are using the platform so far.  Originally the focus was on clean energy loans but it looks like they are branching out into a wider range of conventional mortgage loans.  Since inception, they have provided $5.9 billion in loans to over 175,000 families nationwide, adding offices beyond their roots in Roseville.  You can read their press release here.  Also check out Mark Anderson’s article on them in the Sacramento Business Journal.

At the same time, AQUAOSO has raised a $2 million seed round.  That’s a huge proof point for Chris Peacock and his team who we profiled back in 2017.  It will likely be a springboard to much more. Like LoanPal, AQUAOSO also provides a software platform to users, in this case to assess more accurately and efficiently the water risk inherent in their businesses.  This is especially important for growers in applying for bank loans.  It is like providing the equivalent of a credit risk score for water risk.  It simplifies the loan decisions for banks, but also provides insights into how growers can reduce that risk.  With more volatility in precipitation year to year and a trend to drier conditions, it is easy to see how the AQUAOSO tool is getting attention.  Chris explains his product in a video you can watch here.

So the total disclosed from the Origin, LoanPal, and AQUAOSO financings is $1.727+ billion.  Infinium hasn’t revealed its number, but given the pace they have been on we are guessing they raised over $100 million.  It wouldn’t take that much more to bring the total over $2 billion, almost a ten-fold increase over the best year achieved previously in the region.  Just considering the first quarter alone, the known total is a really big deal.  One thing is sure now—we are on the map for investors looking for cleantech investments.  When we started CleanStart 16 years ago, this was one of the most important milestones we said would be needed to make us a recognized hub for cleantech activity in the US and the world.  Now the question is whether this pace continues.  

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, 

Moss AdamsPowerSoft.biz, Greenberg Traurig, Momentum,

College of Engineering & Computer Science at Sacramento State

Take Advantage of Resources

Take Advantage of Resources

With a strong start to the year, I want to update everyone on resources with which you can connect to advance your business. The best way to do this is to subscribe to our newsletter, follow us on social media and attend our events. We recognize building a cleantech company is difficult and requires special support to succeed. If you are looking for where to start, connect with us here.  Feel free to reach out and talk with me about these resources. We also have this public document on available resources we keep updated.  


First I want to highlight networks and organizations you can reach out to for support.  CleanStart partners with Blue Tech Valley at the WET Center in CSU Fresno. There you can start with Bluetech Valley’s Technology Innovation Evaluation or TIE Process. The evaluation provided to entrepreneurs includes a confidential, independent review of technology, commercial feasibility of the technology, and proposed follow-up actions for validation and commercialization.

Upcoming Events

Also local to us in the greater Sacramento region are several organizations creating a hub for startups.  You can check out StartupSac’s map of regional organizations to get a clearer picture.  Attending the Carlsen Centers events (like the Entrepreneur Toolkit series) will give you access to expert resources from the College of Research and Innovation at CSU Sacramento.

 Keep connected by signing up for our newsletter and our partners

Other Networks you should connect with are Empower Innovation and Mentor Sacramento. Both are similar to LinkedIn and can help you connect with people who may be interested in partnering or mentoring you. The CEC and others have additional programs you can join  Check out CalSEED, Caltestbed, and Rocket fund. They provide early-stage funding to accelerate your idea.  Be ready because some have limited windows in which to apply. Make sure you check them all out and follow us on Social Media.

Thomas Hall

ABOUT THE AUTHOR

Thomas is the Executive Director of CleanStart. Thomas has a strong background in supporting small businesses, leadership, financial management and is proficient in working with nonprofits. He has a BS in Finance and a BA in Economics from California State University, Chico. Thomas has a passion for sustainability and a commitment to supporting non-profits in the region.

CleanStart Sponsors

Weintraub | Tobin, Moss Adams, River City Bank, GreenbergTraurig

BlueTech Valley, PowerSoft.biz, Revrnt, Synbyo, Califronia Mobility Center

Green Products Creating Disposal and Recycling Challenges

Green Products Creating Disposal and Recycling Challenges

What is one of the leading threats to the spread of solar PV installations in the US?  The lack of a good way to deal with old or broken panels from existing installations.  Fifty thousand tons of these are piling up in warehouses in the absence of a better solution.  In Europe, 95% of these old panels are recycled, but in the US less than 10% are.  There is a similar problem with lithium-ion batteries.  End-of-life issues with many of the popular green products are a growing problem and were the focus of our Feb. 25 MeetUp with three great panelists.  It clearly was a hot topic as one of our largest crowds tuned into the event.

Sam Vanderhoof of RecyclePV Solar in Nevada City laid out some stunning realities of the relatively unknown dark side of the solar PV business.  He is working to establish a major recycling facility using some modified German technology to reduce the cost of recycling panels and improve throughput.  One of his biggest contributions was in just describing the scale of the problem.  Old panels are classified as hazardous waste under the RCRA law in the US (even though the content of the offending toxic components is slight) and cannot just be landfilled.  However, for lack of a better solution, some are just busting up the old hardware and sneaking it into landfills anyway.  Not good.   They should be picked up by a hazardous waste hauler and disposed of properly, but that costs $5,000 per truckload.  Also not good.  By 2050 there could be over 50 million tons of PV waste.

Vanderhoof of RecyclePM Solar with Waste

Panels are supposed to have lifetimes of 25-30 years, so where are all the discarded panels coming from?  It is not because of panel failure.  Sam said about half are from weather-related damage—trees falling on them, hurricane winds blowing them off rooftops, and getting hit with hail as examples.  Another 36% are the result of fire damage on the structures on which they were installed.  Less than 9% were due to some electrical failure.

Sam believes the best solution is recycling.  It could be a $10 billion market by 2050.  Some of the panels can and should be refurbished and used again, although the steady drop in new panel prices and the cost of collecting and shipping used panels make the economics of this option poor.  Sam is focused on tuning existing commercial machines to tear apart the old panels and separate the wastes into various value streams.  Probably the best thing to recycle is the glass if it can be done in a way that it is clean and not contaminated by other parts of the panel.  Utlimately, his advice is to require panels to meet standards of recyclability to make the process easier, as is now done in Europe.

Paul Gau of California Electronic Asset Recovery (CEAR) out at Mather Field expanded the conversation to consider what to do with all the lithium-ion batteries that are accumulating.  CEAR handles all types of electronic waste, but some of the toughest issues are posed by these batteries.  CEAR handles 15,000 tons of electronic waste per year and is one of the largest of its kind in Northern California, with 80 employees and 20+ years in business.  He has developed a machine to break up the e-waste with centrifugal force rather than cutting blades and believes this yields a better stream of reusable materials.  

 

Heidi Sanborn of the National Stewardship Action Council (and also a SMUD Board Member) talked about their efforts to promote regulations and best practices to eliminate waste in a number of industries.  Their mission is to make a completely circular economy, with all wastes becoming feedstock for another industry so that ultimately nothing ends up in a landfill.  She also is the volunteer chairman of the California Statewide Commission on Recycle Markets and Curbside Recycling.  She clearly is very busy.  She is an advocate for adding disposal fees to products to encourage recycling and the redesign of products to ensure they are recyclable.  She cited two good examples of how this creates business opportunities.  First, Aquafil opened a carpet recycling plant in Woodland with 50+ employees that can process 36 million pounds of old carpet per year.  In 2010, the state passed a law to collect assessments on carpet and then use the proceeds to incentive collection and recycling.  The Aquafil plant extracts Nylon 6, polypropylene and calcium carbonate from carpet, each of which is used to make another product.  Second, Aero Aggregates is taking curbside recycled glass, which because it is mixed and often contaminated is hard to recycle into new containers, and instead processes it into a replacement for construction aggregates used as road material.  This glass aggregate is 85% lighter than the usual stone aggregates used for backfill.

Applying these approaches to the PV panel issue, Sam estimated that adding $2-4 to the price of all panels sold would provide enough money to incentivize the proper recycling of solar panels IF there were requirements for all panels to be inherently recyclable.  The difference is that in the US, recycling is now costing $15-45 per panel while in Europe, with the recyclability requirements, the cost is 90 cents and falling.

If you appreciate what we do, buy us a cup of coffee here.  We are a nonprofit and depend on your generosity.  Be sure to join our future events such as meetups and our weekly Perspectives events to keep up on all the cleantech happenings in our area.  You can also sign up for our Newsletter to get notified of all future events and read about the discussions of past events. 

Upcoming Events

Upcoming Events

Thomas Hall

ABOUT THE AUTHOR

Gary Simon is the Chair of CleanStarts Board. A seasoned energy executive and entrepreneur with 45 years of experience in business, government, and non-profits.

CleanStart Sponsors

Weintraub | TobinBlueTech Valley, Revrnt, 

Moss AdamsPowerSoft.biz, Greenberg Traurig, Momentum,

College of Engineering & Computer Science at Sacramento State