A Second Attempt at Battery Swapping: Ample Revives a Former Vision

Over thirteen years ago, Shai Agassi, a highly-regarded software executive poised to lead SAP, departed the company to launch a venture named Better Place. This startup aimed to transform the electric vehicle (EV) landscape and eliminate range anxiety for drivers.

The Better Place Promise and its Demise

Better Place proposed a network of automated stations for swapping depleted batteries with fully charged ones. The company secured nearly $1 billion in funding from leading venture capital and growth equity firms. However, by 2013, it declared bankruptcy, becoming a notable failure within the first wave of cleantech investing.

Ample: A New Approach to Battery Swapping

Now, serial entrepreneurs John de Souza and Khaled Hassounah are revisiting the battery swapping concept with Ample. They believe their approach addresses the shortcomings that plagued Better Place, capitalizing on a significantly larger and growing EV market.

In 2013, approximately 220,000 electric vehicles were on the roads globally. By 2019, this number had surged to 4.8 million, demonstrating the increasing adoption of EVs.

Funding and Investor Confidence

Ample has successfully raised around $70 million from investors, including Shell Ventures, Repsol, and Moore Strategic Ventures – the private investment firm of Louis M. Bacon, founder of Moore Capital Management. This includes a $34 million investment from 2018 and a recent round featuring Japan’s Eneos Holdings.

Addressing Past Concerns and Differentiating Ample

“We encountered many individuals who expressed apprehension, drawing parallels to the Better Place experience,” stated de Souza, acknowledging the historical context. “Those unfamiliar with the previous venture often became wary after researching it.”

Modular Battery Packs: The Key Difference

Ample’s core innovation lies in the modular design of its battery packs and its interaction with automakers. Hassounah explained, “Our approach involves modularizing the battery and utilizing an adapter plate that maintains the original battery’s shape, bolt pattern, and software interface.”

“Essentially, we’re providing the plate, without modifying the vehicle itself. It’s akin to replacing a tire – you can choose a fixed battery system or an Ample battery plate. This allows us to collaborate with OEMs, enabling battery swapping in suitable use cases without altering the vehicle’s fundamental design.”

Validation and OEM Partnerships

Ample is currently collaborating with five different Original Equipment Manufacturers (OEMs) and has validated its battery swapping technology across nine distinct car models. Notably, one of these OEMs evokes memories of Better Place’s past.

A partnership with Nissan for the Leaf is evident through Ample’s collaboration with Uber. The founders refrained from commenting on specific OEM relationships.

Echoes of the Past: The Nissan and Uber Connection

Nissan’s earlier agreement with Uber regarding zero-emission mobility confirms Ample’s involvement with the automaker. Uber is the first company to pilot Ample’s robotic charging stations in select locations within the Bay Area. This mirrors Better Place’s previous partnership with Renault, which proved to be its most significant deal.

Operational Efficiency and Scalability

Ample claims it can establish a charging pod at a facility within weeks and offers economics that are 10% to 20% cheaper than gasoline. “We are profitable from day one,” asserted Hassounah.

Focus on Fleets and Municipalities

Uber represents the initial step for Ample, with a primary focus on fleets. The company is currently in discussions with several municipalities to integrate their vehicles into the system. To date, Ample has completed thousands of battery swaps, primarily for Uber drivers.

Vehicles can also utilize conventional charging stations, and Ample’s billing system accurately tracks the energy delivered by both its stations and external outlets.

Billing Models for Different Customers

“Currently, individual drivers are responsible for payment in our ridesharing use cases,” explained de Souza. “With the five fleets we anticipate deploying later this year, fleet managers and owners will cover the charging costs.”

Inspiration and Lessons Learned

Hassounah’s prior experience with One Laptop per Child provided inspiration for Ample. He was compelled to reassess assumptions regarding laptop usage and develop an infrastructure framework.

“Initially, my work centered on the keyboard and display, but I quickly realized the core challenge lay in the field. This led to the creation of a framework for building infrastructure,” Hassounah stated.

The original system design failed to account for limited access to power in children’s homes. Consequently, a battery swapping charging unit was developed, allowing children to use laptops throughout the day and exchange batteries when needed.

Benefits for Both Fleets and Individual Owners

“There are fleets that require this precise solution,” said de Souza. “However, individual car owners also stand to benefit. Over time, as batteries degrade, our system ensures the vehicle maintains and even extends its range with new battery replacements.”

Currently, OEMs are delivering vehicles without batteries, and Ample is handling the installation of its charging system. However, as the number of vehicles utilizing the system exceeds 1,000, Ample anticipates sending adapter plates to manufacturers for direct installation.

Charging Infrastructure and Future Expansion

Ample currently supports level one and level two charging but does not offer fast charging options, potentially to protect its core battery swapping business.

While fast charging technology is improving, Ample’s founders view their business as a complementary solution to accelerate EV adoption. “We need all solutions to solve the problem when moving 1 billion cars,” Hassounah said. “Fast charging is not available in mass. The challenge will not be can the battery be charged in five minutes. The cost of building chargers that can deliver that amount of power is prohibitive.”

Beyond Charging: Grid Power Opportunities

Ample envisions opportunities within the grid power market. “Time shift is built into our economics… that’s another way we can help,” said de Souza. “We use that as grid storage… we can do demand charge and now that the federal mandate is there to feed into the grid we can help stabilize the grid by feeding back energy. We don’t have a lot of stations to make a significant impact. As we scale up this year we will.”

The company currently operates at a storage capacity of tens of megawatts per hour, according to Hassounah. “We can use the side storage to accelerate the development of swapping stations,” de Souza added. “You don’t have to invest an insane amount of money to put them in. We can finance the batteries in multiple ways as well as utilize other sources of financing.”

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