THE LITHIUM REVOLUTION AND DEALER OPPORTUNITY

Lithium power is revolutionizing literally hundreds of markets and has opened up the potential for a substantial market in small, task-oriented vehicles, which includes golf cars, PTVs, and utility vehicles. Several battery companies now offer drop-in solutions, so that the market is not confined to the OEM segment but also includes the aftermarket; targeting the stock of used vehicles, which, of course, is much larger than the annual OEM new vehicle sales.

Dealers will play a key role in opening up the market. Dealers are point of sale advocates for the products they supply to the market, and their customers rely on them for sound advice.

Entrants in the lithium battery race include Trojan, with its Trillium line, Allied Battery, Green Power with its “visible, smart” battery system, and RELiON Battery with its Insight™ series.  

This article features an interview ND conducted with Christine Feodorov, Vice President, Product Management and Development at RELiON Battery.

The key is market acceptance

Although the above-mentioned companies are competitors, it is also true that in situations where a brand new market is being developed, all competitors have an interest in gaining market acceptance for the new concept, the new technology, the new, whatever is unique in the product.  

At this stage of market development, the promotional efforts of every competitor, including dealer awareness and education, will work toward the common goal of gaining market acceptance—and reap the rewards of accelerated earnings that typify the early stages of new market growth.

RELiON Battery has a drop-in solution

New Directions (ND) conducted an informative interview with RELiON’s Christine Feodorov, Vice President, Product Management and Strategy for the company. Here is what she was able to tell us about her company’s groundbreaking product line of lithium batteries:

ND: Lithium power is a revolutionary power source across many industries, but Christine, lets focus on what we in the gated community are most concerned about, namely, PTVs and light duty utility vehicles. So, let’s suppose a typical consumer has an LSV with lead acid batteries, does RELiON offer a true “drop-in solution”, should he or she wish to switch over to lithium power?

Feodorov: Yes, RELiON offers a true drop-in solution for 48V vehicles. Our InSight 48V030-GC2 is a standard golf-sized battery so there are no tray modifications needed.

ND: What makes RELiON’s InSight™ product unique compared to other lithium batteries?  

Feodorov: RELiON’s InSight is the only battery designed from the ground up for this market by a team of people with over 100 years combined experience in the Golf/Utility Vehicle-type segments. There are numerous differences between InSight and other lithium batteries, but the biggest difference is in the BMS and software.  

RELiON’s BMS and intuitive Software, not only has sophisticated algorithms to allow for various levels of protection, it is the only system that can seamlessly manage regenerative currents, which means the vehicle will not experience sudden battery disconnects. There are many other unique features and benefits which can be found on our website RELiONbattery.com.

ND: Does the battery replacement require service at a dealership, or can the average consumer do the change-out?  What would you recommend?  

Feodorov: It does not require service at a dealership. The most challenging part would be removing the heavy lead-acid batteries from the vehicle. RELiON’s InSight 48V030-GC2 batteries can be placed in the vehicle where the lead-acid batteries resided. The only differences are they are connected in parallel rather than series and there are CAN cables to connect between each battery that are hand tightened. Most likely, the consumer will use fewer lithium batteries compared to lead-acid, so in the event the hold-down brackets require 6 batteries to be installed, we recommend using our spacer batteries, which we provide, to fill the empty slots. We provide a Quick Install Guide to make it really simple.

ND: Would there be a need to change the controller or reprogram the existing one? 

Feodorov: There is no need to change the controller or reprogram the existing one.

ND: In the case of a change-out to a RELiON battery, would the charging process be any different from what the owner is used to with lead acid batteries? 

Feodorov: The process is not different however they will charge much faster due to the superior efficiency of charging lithium over lead-acid batteries, which also results in a cost savings. We have researched the common chargers being used in this industry and our end goal is to assure all chargers work seamlessly with the InSight battery. With our world-wide presence and range of market segments, this is an ongoing work in process, but our team is readily available to address specific questions or concerns should they arise.

ND: What about battery maintenance, including storage for relatively long periods of inactivity? Are there advantages (or disadvantages) with regard to lithium batteries?  

Feodorov: With RELiON’s InSight product there is no maintenance during storage; just charge them up and turn them OFF. If you forget to manually turn them OFF its not a concern as they will turn OFF on their own within days. There can be definite advantages to storing lithium if designed properly, which RELiON has done with its InSight product.  

Although lithium cells self-discharge at a lower rate than lead-acid, the BMS included with the battery system often accelerates that discharge rate, negating the benefit. RELiON took this issue into consideration at the design phase and its BMS combined with its intuitive software does not deplete the battery. It will transition into an idle mode and then a standby mode to not drain the battery. In fact, RELiON’s 48V030-GC2 would take well over 2 years to deplete its energy during storage starting from a fully-charged state.  

ND: Do you see a market in gated communities, such as The Villages in Florida, where gas engines are preferred because of the distances involved?  

Feodorov: Absolutely. Only 2, 48V030-GC2 batteries; which provide 60Ah, will deliver between 40-50 miles of range on a single charge. Add a third battery and you will be able to drive 60-75 miles and a fourth would provide 80 – 100 miles. Those who have been forced to use gas engines to get the range they want, can now switch to a quieter, environmentally friendly electric motor without sacrifice.

ND: And what about light duty utility vehicles, such as Club Car’s Carryall line, the Cushman Hauler models, and Yamaha’s UMax Rally Electrics? Have you been able to build a market in this segment?  

Feodorov: Our InSight product was designed with Golf and Utility Vehicles in mind, amongst other light duty vehicles. All the benefits provided by InSight are only magnified in heavier duty applications. InSight is already being used in this type of equipment around the world and the RELiON team is working closely with many equipment manufacturers at the corporate and engineering levels to further advance our gains in these segments.

ND: Many living in gated communities are golfers and use the facility’s fleet vehicles. We don’t want to be stuck out on 16th hole with a dead battery. And facility management has to be concerned about cost. So, what can you say about the fleet market?  

Feodorov: In the fleet market RELiON’s InSight product provides all the benefits that an individual consumer would get plus the additional benefit of a tremendous savings, up to a few thousand dollars per year, in electricity costs associated with charging a fleet of golf carts. The charge efficiency of lithium batteries can often be overlooked as the benefits are not understood, but they should be a factor in the purchasing equation, as it can dramatically improve the ROI while at the same time providing a noticeably more powerful vehicle.

ND: Finally, Christine what about distribution for the RELiON Insight—so important in new market development?

Feodorov: Our goal is to be easy to do business with, so we have a flexible go-to-market approach using multiple strategies. We are keenly aware of the differences between the fleet and consumer markets and we have positioned RELiON to be able to successfully work with consumers, dealers, distributors and OEMs. We’ve priced our product so that we can sell at all levels without competing against our customers. We are doing educational webinars, regional training and producing web content to educate the market on the benefits of lithium and the specific and unique benefits of RELiON’s InSight product.

ND: Thanks Christine. This has been very informative and exciting. Looking forward to seeing at the 2020 PGA Show.

ND opinion:  Is price a barrier?

Unquestionably, the upfront costs of a lithium battery are substantially more than an equivalent voltage lead acid package.  However, given the much longer life of a lithium battery (typically 5,000 lifetime cycles vs. 500 for lead acid) and the other clear advantages with regard to weight, distance, storage, and charge time, the price tag is not prohibitive.

Not so long ago, manufacturers were unduly cautious about introducing AC motors because for their greater cost compared with the standard of the day DC motors. AC motors are now mainstream.  A stroll through The Villages Golf Cars showroom a couple of years ago, revealed that the lowest priced vehicle on the floor was about $12,000. A golf car priced at $18-$20,000 today is not uncommon.  Substitute some of the accessory frills for substantially better operating performance, and sales can be made.

Lithium battery technology: Separating myth from reality

Want to learn more about lithium batteries? Here is a link to an excellent, white paper put together by the folks at RELiON.