Shai Agassi, founder and CEO, Better Place.

Why will electric cars work now?

It is becoming clear that the world's addiction to oil cannot be sustained. Fuel prices are higher than ever before. At the same time technological developments, particularly those related to battery technology, mean that electric cars are becoming more advanced and less expensive. The mass adoption of electric cars requires four elements:

• Electric cars produced by major car companies that are competitive with current ICE cars and offer comparable or superior customer experience;
• Safe and affordable batteries with a reasonable driving distance between charges;
• Exchangeable battery stations and ubiquity of charge networks to ensure high customer confidence in the availability of charging locations; and
• An affordable business model that reduces total electric car ownership.

Battery technology has greatly improved in recent years. In the past, the focus has been on creating batteries that held a charge for distances of more than 400 miles (644 km) per charge. This is an expensive, challenging and a more futuristic undertaking. Better Place will deploy lithium ion based batteries which are considered today as the most advanced in the industry, being the safest, smallest, lightest and most efficient than ever before. By separating the battery from the car and making it a component of the infrastructure, we are taking a different approach. Because the battery is separated from the car, it can be recharged and replaced simply and efficiently through automated battery exchange stations. This approach allows us to create an ecosystem that uses battery technologies that are currently available, making electric vehicles an immediately viable alternative to fuel-powered cars.

What are the core elements of your subscription-based model?

Better Place is a mobility service provider that has a subscription-based model. This model enables consumers to own electric cars for a fraction of the cost of comparable ICE (internal combustion engine) cars. The model is similar to those seen in the mobile market where wireless network operators offer customers subscription-pricing options and various models of mobile phones at significantly reduced rates. The batteries that power the cars are owned by and considered part of the Better Place network. This model dramatically alters the economics of electric car ownership for drivers, while preserving the social contract drivers have with their cars. To match multiple customer segments, Better Place will offer several car models and subscription pricing packages that will reduce total cost of ownership and subsidize the car as part of this package.

What are the requirements for a geography/area to be a viable candidate for the electric car charging network?

The areas most attractive for initial deployments have high population densities and commuter traffic. Ideally they are relative transportation "islands." In smaller states or countries, Better Place can complete system deployment to support electric cars nation/statewide. For larger countries, Better Place will begin in the dense urban areas and expand from there. This deployment methodology is very similar to that employed by mobile operators.

What role does the government play in the mass deployment of electric cars?

The Better Place model can be implemented without immediate government support; however the rate of consumer adoption depends on government policy. Government can put in place consumer friendly policies / incentives that reduce the price of the total cost of the electric car for early adopters.