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Green Cars and Definitions

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The exhaustion of crude oil, planetary heating, a crisp addition in oil monetary values, and strategic competition of car industry, those current issues addition demand for green auto. Until 2006, People did n’t much concern about fuel monetary value, because the highest point of international oil monetary values was merely about 50 dollar per a barrel. The accumulate gross revenues volume of HEV was about five 100 1000, which is on one per centum of entire figure of vehicles in the universe. However, the size of green auto market expanded twice in 2007, caused by a large leap in oil monetary values.

The crude oil ingestion by emerging states such as China and India has surged. Otherwise new oilfields can non be discovered. Those cause instability between supply and demand supply and demand of oil, and oil monetary values are expected to stay high for rather a long clip. Therefore, most of analysts forecast the changeless growing in green auto market.

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Another factor speed uping green auto development is domestic environmental ordinances.

Harmonizing to vehicle emanation ordinance issued by EU, autos produced from 2012 will hold restriction on the mean C dioxide emanations to 130g/km. US authorities has a program to obligatory maintain more than 12 % of green auto ratio among entire gross revenues volume to all auto shapers. Under those fortunes, auto shapers rush into green auto development. The intent of green auto is to diminish pollutants cut downing usage of dodo fuel, finally achieve Zero Emission Vehicle ( ZEV ) ( Yang 2008 ) .

After all, from Internal Combustion Engine ( ICE ) to viz. ‘Green Car ‘ such as Clean Diesel, Hybrid Electric Vehicle ( HEV ) , Plug-in Hybrid Electric Vehicle ( PHEV ) , Fuel Cell Electric Hybrid Vehicle ( FCEV ) , Electric Vehicle ( EV ) , they are classified by ‘how much electric energy auto uses ‘ . [ Table 1 ] shows types of Green autos and definitions.

[ Table 1 ] Types of Green Cars and Definitions


Green Car

besides called ‘environmentally friendly vehicle ‘ , it produces less harmful impacts to the environment than comparable conventional internal burning engine vehicles running on gasolene or Diesel

Clean Diesel

besides called ‘Ultra-low S Diesel ( ULSD ) ‘ , it defines diesel fuel with well lowered S contents

Hybrid Electric Vehicle ( HEV )

Hybrids combine a gas motor with an electric engine that can reload on its ain, offering a great manner to widen the stat mis per gallon of gas your auto uses to go farther distances

Plug-in Hybrid Electric Vehicle ( PHEV )

besides called a plug-in loanblend, it is a intercrossed vehicle with rechargeable batteries that can be restored to full charge by linking a stopper to an external electric power beginning

PHEV portions the features of both a conventional intercrossed electric vehicle, holding an electric motor and an internal burning engine

Fuel Cell Electric Hybrid Vehicle ( FCEV )

FCEV uses a battery to change over H and O chemicals into electricity, and it can last every bit long as the energy continues to flux. FCEV helps cut down nursery gas emanations by 70-80 per centum and can utilize both renewable resources and natural gas

Electric Vehicle ( EV )

EV is a zero-emissions vehicle ( ZEV ) that produces no harmful fuel emanations because it relies strictly on electricity from batteries to run

Beginning: hypertext transfer protocol: //www.greenstudentu.com/encyclopedia/green_vehicle_guide

Rechargeable Battery for Green Car

Ni-MH Battery and Li-Ion Battery

In the early of 1990, Ni-MH cells formed stable market replacing Ni-Cd. Ni-MH battery is non expensive and non explosive particularly comparing to Li-ion. With those advantages, Toyota Prius, Camry, Honda Civic, BMW x6 are lading Ni-MH batteries. However, tendencies of rechargeable batteries are in front for high capacity but minimising ( KISTI 2009 ) . In this context, advanced Lithium type batteries are at the bosom of the coming moving ridge of electric autos and plug-in loanblends.

Recently, Li-ion battery received public attending to be discussed about new engineering for EV/PHEV. Sing the coming of Li-Ion cells, Sony foremost commercialized it in 1992 for electronic devices. From this point, Li-ion battery applied for nomadic phones, MP3Ps, notebooks, net books, and so on. It has an advantage of light weight, but besides disadvantaged of vulnerableness to heat. For illustration, it is known as a doing factor of ‘battery detonation ‘ occurred in Mobiles and notebooks. And this is why Toyota adheres to Ni-MH battery for Prius ( LG Business Insight 2008 ) .

Latest engineering tendencies of electric-car battery are following advanced Li-Ion types such as Li-Ion Battery, Lithium Polymer Batteries ( LPB ) etc. For case, Hyundai loads LPB to its HEV. In other words, LG Chem ‘s LPB will be loaded to 2011 YF Sonata, Avante Hybrid, Forte LPI. Furthermore, former Ni-MH user Toyota announced the program to lade Li-Ion Battery to HEV, expected to travel on bring forthing in 2011. And Honda will sell PHEV and EV with Li-Ion from 2012. [ Table 2 ] compares features between Ni-MH and Li-Ion.

[ Table 2 ] Comparing Features between Ni-MH and Li-Ion Battery

Ni-MH Battery

Li-Ion Battery

Energy Intensity

1000 W/kg

2000 W/kg


Approx. 5 old ages

Approx. 10 old ages

Self Discharge





Defender required

Relative Cost



Beginning: LG Business Insight 2008, hebdomadal focal point: e¦¬iS¬i „i§ˆ , i•?i??e??e¦¬e“?i??i™ˆ i•?e»? e‹¬e¦°e‹¤ .

Research workers anticipate that the chief watercourse of green auto is pure electric vehicle, in the close hereafter. Ni-MH cells are often used to HEV with the advantages of less expensive and less vulnerable, until now. With accelerated PHEV and EV development, nevertheless, it is inevitable to utilizing Li-Ion Batter. With calculating market portion of Electric-car batteries [ Figure 1 ] , we can see quickly increasing demand of Li-Ion cells.

[ Figure 1 ] Market Share of Electric-Car Batteries

Beginning: LG Business Insight 2008, hebdomadal focal point: e¦¬iS¬i „i§ˆ , i•?i??e??e¦¬e“?i??i™ˆ i•?e»? e‹¬e¦°e‹¤ .

( calculating figures from 2009 )

Core engineering of EV is based on ‘Battery ‘ . Electric-car battery, accounting for 15 per centum of entire cost, is a nucleus constituent. Therefore, the spread outing market for better batteries is besides expected along with rapid growing of HEV/EV market.

[ Figure 2 ] Manufacturing Cost of HEV Major Components ( % )

Beginning: LG Business Insight 2008, hebdomadal focal point: Lithium Battery, i•?i??e??e¦¬e“?i??i™ˆ i•?e»? e‹¬e¦°e‹¤ , LGERI, 2008.

For more available Li-Ion Batteries, car corporations face the jobs of cost cut and battery continuance. Most of intercrossed vehicles take in Ni-MH type batteries including Toyota Prius, Camry, BMW x6 and so on, and this is because of cheap monetary value. In malice of heavy weight and hebdomad storage capacity, 80~90 per centum of HEV follow Ni-MH batteries. For case, Mitsubishi i-MiEV ( EV with Li-Ion ) costs twice than Toyota Prius ( HEV with Ni-MH ) ( Park et al. 2010 ) . Battery shapers are viing in monetary value decrease and bettering its quality. However, it is non sufficient for doing a contract to provide HEV/EV batteries. Traveling its nucleus systems from ICE to electric systems, auto makers multiply their confederation strategically and technically for new merchandise development. For developing hybrid/electric auto batteries, which are slightly new merchandises, partnership with co-developer is besides critical factor, based on proficient capableness and resources. At the undermentioned portion, scheme of LG Chem is analyzed.

a…? . LG Chemical

“ Now, LG Chem is no more ‘Fast Follower ‘ but ‘First Mover ‘ in the Li-ion rechargeable battery for EV. ”

e??e‹?i?¬e?°i?? , August 21, 2009

At 2009 Frost & A ; Sullivan Asia Pacific Industrial Technologies Awards, Kim Ban-suck, vise president of LG Chem. , added that “ LG Chem will put to EV battery invariably and prosecute advanced activities. ” Annually, Frost & A ; Sullivan, a planetary market research and confer withing institute, select and announce companies which accomplish first-class public presentation in each industry. LG Chem, which is recognized as the best engineering in electric-car battery field, received Energy Storage Company of the Year Award in Singapore 2009.

Obviously, LG Chem was late coming into the market of electric-car batteries but now at the top of the industry. An article from concern hebdomad good described the critical state of affairs.

No ‘s vision — peculiarly for batteries — is ambitious. Sanyo ‘s market portion is about 30 % , approximately ternary what LG has. Rising monetary values for natural stuffs such as Co pushed LG ‘s battery concern into the ruddy last twelvemonth, while Sanyo enjoyed an estimated 6 % net income border. Competition is ferocious: Sony and Matsushita Battery Industrial are bigger than LG ; local challenger Samsung SDI Co. is about the same size ; and China ‘s BYD and Lishen are spread outing sharply as more electronic appliances are made in China.

How LG Chem Is Changing Its Formula

Business WEEK, ASIAN BUSINESS, MAY 16, 2005

LG Chem, de facto Fast Follower, awarded contracts with 8 of planetary car corporations to provide Li-ion battery for EV, from 2009 to 2010. Shin eun-ju, an analyst at Korea investing security, said that LG Chem is already planetary leader of mid-large format Li-ion battery field, particularly for EV.

To go ‘First Mover ‘ from ‘Fast Follower ‘ , How LG Chem is altering its expression?

Lee Young Han, a research worker at LG Chem Research Park, pointed out ‘speed direction ‘ and ‘partnership ‘ as their competitory advantages in such engineering intensive industry. In this context, ‘Partnership ‘ means ‘co-development confederation ‘ , does n’t mean to do Quanxi ( e-?a?‚ ) or rebate pickings.

Co-development Alliance

In the formation phase of collaborative new merchandise development, the spouse choice procedure is critical. Harmonizing to Emden et Al. ( 2006 ) , three stages consist of the procedure: proficient alliance e strategic alliance e relational alliance. At the first stage of proficient alliance, spouse ‘s proficient ability and resources are of import factors. And so, companies seek to the spouse who can portion and accomplish the end. At the latest, companies consider about compatible civilization, leaning to alter, and long-run orientation. To accomplish co-development of HEV/EV batteries with planetary auto shapers, LG Chem proceeded measure by measure. [ Table 3 ] shows how LG Chem developed the partnership based on proficient capableness with planetary car companies.

[ Table 3 ] History of LG Chem in Electric-car Battery Field

Partner Automobile company




June 2000

Embarking on R & A ; D of electric-car battery


Apr 2001

Establishing R & A ; D subordinate CPI ( Compact Power Intercorporate ) in United states



Electric auto with Li polymer batteries of LG Chem, victor at Pikes Peak International Auto Rally for 2 old ages in a row


Apr 2004

Obtaining an order from USABC ( United States Advanced Battery Consortium ) established by US DOE and 3 major auto shapers


Oct 2004

Selected as R & A ; D spouse of Li polymer batteries for E-Bike


June 2007

Selected as R & A ; D spouse of Li polymer batteries for GM Volt

Hyundai ( Korea )

Dec 2007

Contract to provide lithium polymer batteries to Hyundai Avante ( HEV )

GM ( US )

Jan 2009

Contract to provide lithium polymer batteries to GM Volt


Aug 2009

Standard 2009 Energy Storage Company of the twelvemonth Award at Frost & A ; Sullivan Asia Pacific Industrial Technologies Awards

CT & A ; T ( Korea )

Oct 2009

Contract to provide electric-car batteries to CT & A ; T, come ining NEV auto market

Eaton ( US )

Jan 2010

Contract to provide hybrid-car batteries to Eaton from 2010 for 4years, come ining commercial auto market

chongqing Changan Automobile carbon monoxide.

( e•·a®‰?±?e»S , China )

Feb 2010

Agreement to provide hybrid-car batteries ( Li-ion ) to Changan Automobile in the 2nd half of 2010

Volvo ( Sweden )

Apr 2010

Through the contract with Volvo, Approved engineering and safety of LG Chem batteries

Ford ( US )

July 2010

Contract to provide electric-car batteries to Ford FOCUS



Procuring client relationship with 2 of 3 major US auto shapers


July 2010

Constructing $ 303 Million Advanced Battery Plant in Holland, Michigan

Renault ( France )

Oct 2010

Contract to provide batteries to Renault for its pure electric vehicle undertaking

In 2001, LG Chem established R & A ; D subordinate Compact Power Intercorporate ( CPI ) in Detroit known as the universe ‘s traditional automotive centre. Lee Young Han said, set uping R & A ; D subordinate in Detroit was aiming co-development with US auto shapers. From this point, LG Chem showed more aggressive activities such as take parting in pool. In 2004, they participated in United States Advanced Battery Consortium ( USABC ) established by US DOE and 3 major auto shapers ( GM, Ford, Chrysler ) . LG Chem obtained an order from this pool, and it became large chance to be officially recognized their proficient capableness. With the assurance of engineering, LG Chem tried to co-develop with GM because engineering of LG Chem and its end coincide 1s of GM Volt. GM wanted lighter battery congratulating its defect, vulnerable to heat.

The Volt is designed to utilize new lithium-ion battery battalions, which hold a charge longer than the nickel metal hydride batteries presently in usage. One job is that these are known to overheat and catch fire. They are nevertheless lighter and already in widespread usage in consumer electronics such as laptops and cell phones.

GM Volt home page, January 13, 2007

In 2007, GM Volt selected LG Chem as R & A ; D spouse and begun to co-develop Li polymer batteries. LG Chem was non merely spouse to GM Volt, nevertheless, US battery shaper A123 besides join co-development every bit good. Most of related people expected that A123 would be concluding victor at GM Volt battery lucifer. Peoples might pretermit that LG Chem was non an amateur. For developing batteries for HEV/EV, LG Chem has co-developed with Hyundai since 2002. Furthermore, LG Chem has supplied hybrid-car batteries to Hyundai since 2007. Unexpectedly but non surprisingly, LG Chem became the victor with contract to provide lithium polymer batteries to GM Volt.

[ Table 4 ] LG Chem ‘s Major Project Process with GM and Hyundai




Taking participate in conference for GM Volt battery ( ’07. 03 )

Co-development with Hyundai ( ‘02.10 )

One of selected two battery developer for GM Volt ( ’07. 06 )

Embarking on developing batteries of Avante HEV ( ‘06.01~ )

Offer samples ( ‘07.11~12 )

Contract to provide batteries to Hyundai ( ‘07.01 )

Selected LG Chem ‘ battery control system for GM Volt ( ‘08.10 )

Co-managing Government R & A ; D undertaking in energy system for PHEV ( wholly 3 undertakings ) ( ‘08.12~ )

Contract to provide batteries to GM Volt ( ‘09.01 )

Beginning: Industry Analysis Report: Chemical/Display/Rechargeable Battery, Korea Investment Security, 2010.

Uncluttering manner A123, LG Chem has more fight, demuring technological capableness. It is their civilization ‘Speed Management ‘ . Culture of LG Chem is more suited to fulfill client ‘s demands including GM, Hyundai, Ford, Renault, and so on. It is slightly related with relational alliance.

Speed Management

The phrase ‘Speed Management ‘ , the critical civilization of LG Chem, is easy found at LG Chem ‘s home page. For their ‘Speed Management ‘ , members of LG Chem should be prior, faster, and more frequent than rivals. With Speed Management, LG Chem focuses on their strength. In the facet of concern direction, they invest more resources to their nucleus concern, and industry. In the facet of human resources, LG Chem tries to happen out characters of each member and maximise their capableness ( lgchem.com ) . In other words, each of all members plays an of import function in the determination devising procedure, non merely executives.

“ Opinions of applied scientists in field are quickly reflected in direction ” , emphasized a research worker Lee Young Han. “ so we can fulfill clients ‘ demands, rapidly. This is another competitory power of LG Chem. ”

After supply partnership with GM, LG Chem accelerated market enlargement and set uping fabrication pant in US. With the battery order from Volvo, non merely engineering but safety of LG Chem batteries is approved. Subsequently, LG Chem plans to provide electric-car batteries to Ford FOCUS. LG Chem expects to increasing gross revenues volume along with that Ford plans to multiply PEV theoretical account in the close hereafter ( Chosun biz 2010 ) . Hereby, LG Chem concludes partnership with two biggest vehicle makers among major 3 in US.

In Holland Michigan, July 16 2010. US President Obama participated in the groundbreaking ceremonial of the new LG Chem battery works. This singular event shows strong finding of US authorities on puting in Clean Energy. The works was funded in partly supported by a DOE stimulation grant of $ 151 million. Once to the full operational in 2012, the works will be capable of bring forthing about two hundred thousand cells for HEVs and EVs, particularly for both Chevrolet Volt and the approaching Ford Focus Electric ( gm-volt.com ) .

[ Figure 3 ] Obama Meets President and Vice President of LG Chem

a…? . Rivals Analysis

No more conventional rivals in rechargeable battery field. There are JVs which is emerged by co-investment or equity sharing, normally between auto shapers and chemical companies ( battery shapers ) . These tendencies of emerging JVs besides attach an importance to co-development in this industry.

[ Table 5 ] JVs in HEV/EV Battery Industry

Toyota + Panasonic ePanasonic EV

Nissan + NEC eAESC

GS Yuasa + Mitsubishi Motors eLithium Energy Japan

GS Yuasa + Honda Motors eBlue Energy

Johnson Controls + Saft eJCI/Satf

Samsung SDI + BOSCH eSB Limotive

Toyota Prius ( HEV ) adopts Ni-MH battery of Panasonic EV. Honda Insight ( HEV ) is loaded with Ni-MH of Sanyo which is under M & A ; A procedure by Panasonic. Through purchasing out, Panasonic is expected to spread out its clients to Honda, Volkswagen, AUDI, Ford, and GM which were 1s of Sanyo. Automobile and chemical companies in US and China give waning of Panasonic, going the universe ‘s biggest battery manufacturer. Korean houses including LG Chem can do this menace to chances to near US and Chinese car houses ( Kim et al. 2008 ) . Furthermore, Toyota embarked on developing ‘air cells ‘ used for a hearing assistance. Harmonizing to Japan Insight ( 2008 ) , Toyota established R & A ; D centre and it is merely antiphonal to air-cell development.

AESC supplies Li-Ion batteries to Nissan Leaf ( EV ) . GS Yuasa is major in Nipponese market, particularly in Lead-acid, Ni-Cd. However, GS Yuasa did n’t commercialized Li-Ion batteries until 2009. GS Yuasa portions a 51 % interest in each JVs, Lithium Energy Japan and Blue Energy. Mitsubishi Motors i-MiEV ( EV ) is loaded Li-Ion cells of Lithium Energy Japan. Honda motors invested wholly 260 million dollar to Blue Energy ( Shin et al. 2010 ) . SB Limotive, joint venture between Samsung SDI and BOSCH, has a inclination to trust on EU market secured by BOSCH. Harmonizing to Automotive News, 62 % of entire gross revenues volume of BOSCH is concentrated in EU. Because BMW, a major client of SBL, lower gross revenues in the US, it is hard to bring forth cost fight through economic systems of graduated table if SBL do non acquire the partnership with Volkswagen or PSA Group ( Peugeot, Citroen ) ( Kim 2009.09 ) .

a…¤ . Managerial Recommendations

Visual image of the amalgamation as Sanyo and Panasonic calls for variegation of confederation to U.S. and Chinese auto companies and makes them to be wary of Nipponese companies. Furthermore, from the outgrowth of JVs between car makers and battery shapers, the importance of co-development and partnership is increasing.

Nipponese major auto manufacturers such as Toyota, Nissan, Mitsubishi, Honda Motors joined with battery houses straight, and Samsung SDI took the competitory place through the JV with BOSCH.

LG Chem has been co-developing with US car houses more actively through the R & A ; D subordinate CPI in Detroit. Get downing with supply contract with GM, LG Chem receives orders from planetary auto companies.

Based on proficient capableness, LG Chem has been increasing its fight concentrating on ‘partnership ‘ and ‘speed direction ‘ . Formed with partnership with GM and Ford, LG Chem accelerated set uping new battery works in Holland Michigan. At the groundbreaking ceremonial in July 16 2010, the engagement of US President Obama could presume that LG Chem steadfastly rooted in US market.

a…? . Mentions

BIR, i??i™?e??i „e?°iz?e?™i°?i‹?iz?i?? i‹¤i??i™ˆ i „e§? , Business Information Research, 2009

Kim Young Woo, So Young Han, Industry Analysis: Rechargeable Battery HMC Investment Securities Research Center, 2008

Kim Young Woo, Industry Analysis-Rechargeable Battery, HMC Investment Securities Research Center, 2009.09

Kim Young Woo, Company Brief-SamsungSDI, HMC Investment Securities Research Center, 2009. 08

KISTI, i•?i??e??e¦¬e“? i „e?°iz?e?™i°?is© e? i¶?e ? e¦¬iS¬i??i°?i „i§ˆ , i•?eµ­e??i•™e?°i? i •e??i-°eµ¬i›? ( KISTI ) , 2009

LGERI, Japan Insight 2008.9, LGERI, 2008

Park Ga Young, Heo Young Joo, Theme Analysis Report: Electric-car and Rechargeable Battery, Korea Investment Security, 2010

Shin Eun Joo, Park Kiyoung, Jung Hee suction, Industry Analysis Report: Chemical/Display/Rechargeable Battery, Korea Investment Security, 2010

Yang Seong Jin, LG Business Insight 2008, hebdomadal focal point: Lithium Battery, i•?i??e??e¦¬e“?i??i™ˆ i•?e»? e‹¬e¦°e‹¤ , LGERI, 2008

Zeynep Emden, Roger J. Calanton, and Cornelia, Collaborating for New Product Development: Choosing the Partner with Maximum Potential to Create Value, Journal of Product Innovation Management, Volume 23, Issue 4, pages 330-341, 2006

A· Articles

& lt ; LGi™”i•™ 2i°?i „i§ˆ ?-?e?°i-… i ?i?¤e‹¤ & gt ; e??e‹?i?¬e?°i?? , 2009. 08. 21

& lt ; How LG Chem Is Changing Its Formula & gt ; Business Week, Asian Business, 2005. 05. 16

& lt ; LGi™”i•™ i?¬e“?iz?e?™i°? 2i°?i „i§ˆ e?µe?‰i-…i??e?? i„ i • & gt ; Chosun game, 2010. 07. 14

A· Web Sites

LG Chem, Ltd. : hypertext transfer protocol: //www.lgchem.com/

LG Chem Research Park: hypertext transfer protocol: //www.rnd.lgchem.com/

A123: hypertext transfer protocol: //www.a123systems.com/

GM Volt: hypertext transfer protocol: //gm-volt.com/

Green Student U: hypertext transfer protocol: //www.greenstudentu.com/encyclopedia/green_vehicle_guide

Cite this Green Cars and Definitions

Green Cars and Definitions. (2017, Jul 09). Retrieved from https://graduateway.com/exhaustion-fears-and-green-car-markets-commerce-essay/

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