Should we all embrace Japan’s kei car model – small, cheap, but not exactly safe?
A new breed of electric vehicles is drawing inspiration from Japanese kei cars, tiny cubes-on-wheels that are highway-legal but not likely to pass muster with US or EU safety standards. But what if we loosened up those standards to help lower prices, enabling broader adoption of EVs to people who don’t have 30 grand or more to spend on a car? That is, at least, one of the ideas that French automaker Renault’s head Luca de Meo has put on the table.
Recently de Meo, who also heads up the ACEA, the European Automobile Manufacturers’ Association, took to the stage at a press conference to argue against the instability of European legislation on their industry. He says that they are now facing eight or nine European regulations coming into force each year until 2030, with some of them being contradictory. An incredible amount of time, energy, and money is monopolized to work to meet the demands, with de Meo saying that 20% of the company’s engineers are “almost entirely” dedicated to making sure products developed in-house comply with the standards. These standards encompass everything from safety to pollution levels to visibility and infotainment systems, among other things.
Basically, he argues that Europe needs to adopt a less fluctuating and intense framework to keep the playing field level for European automakers to stay in the game and make some cheaper cars. If Europe simplifies the rules, consumers can enjoy a 40% reduction in car prices by 2027-2028, he argues.
It’s a very tempting proposition, especially when you factor in his idea of creating a whole new category equivalent to kei cars in Europe (we’ll include the US here as a thought experiment) – like in Japan, these cars too would have limits in terms of their size, weight, and power, all in exchange for less stringent safety requirements while benefiting from tax breaks. Picture a tiny car with a tiny battery priced as low as $10,000 – in terms of size, it’s not quite a Citroën Ami but not a Tesla Model 3 either.
De Meo has officially stated that he has drawn inspiration from kei cars for an upcoming crop of EVs coming out of Ampere, Renault’s EV subsidiary, especially the new electric Twingo. While inspired by the first-generation hatchback from the ‘90s, the new Twingo has adopted some kei aspects, such as a slight cube-style shape maximizing interior space in a reduced size with five doors. Renault hasn’t yet released any specifications on the car but promises an efficiency of up to 6.2 miles per kWh, with a price set for under €20,000, or around $22,000. But still, the new Twingo needs to comply to European standards, especially in terms of crash testing (and we might see that price crawl up before it becomes available). That’s the main reason we don’t see Japanese models outside of Japan, such as its best-selling EV kei car, the Sakura.
Electrek’s Take
There are a ton of reasons why this makes sense – just in practical terms of having better access to cheap, light cars that are easy to drive and park. People want small, lightweight cars for short commuter trips or city driving, and lighter EVs would take some pressure off roads as well. And if you’re worried about being cramped, they are designed to maximize interior space, so the boxy frame offers plenty of leg and head room to keep you comfortable, for a little while at least.
Of course, if the idea of being behind the wheel of a highway-legal kei car on a five-lane freeway with SUVs and trucks bearing down on you is terrifying, I agree. It’s really a game of physics here – big, heavy vehicles with long hoods and big crush zones take the advantage here. But clearly the trend is going in the wrong direction, and we need more more small cars on the road, not the two-ton behemoths that are being sold now. Small, cheap EVs fill a huge void in the market. And of course, we’re not talking about radically reducing safety regulations either – I’m old enough to remember riding in a Yugo, the world’s unsafest car and a harrowing experience because it was a literal tin can. Unsafe, cheap cars sold to people who can’t afford all the safety bells and whistles is depressing, and seeing safety reductions for cost savings is a tricky proposition long-term. It’s more about finding some middle ground. If we could get it right, this could be a great move.
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Members of the US energy industry has committed to investing $100 billion over the next five years to build and buy American-made batteries for large, utility-scale deployments of battery energy storage systems (BESS).
Executives from the American Clean Power Association (ACP) and several utility company representatives said Tuesday that they were committed to a fivefold increase in active investments that could, according to the Association, lead to 100% American-made BESS projects – but that vision depends on both a streamlined permitting environment and predictable tax and trade policy, the ACP said.
This commitments “demonstrate what success can look like,” said ACP CEO Jason Grumet, adding that many industry players have been waiting in a sort of holding pattern until some long-term clarity develops around Trump’s tariff and trade policies. “There is a remarkable tension right now between probably the best fundamentals for investment in the energy sector that we’ve seen in a generation and the greatest amount of uncertainty that we’ve seen in a generation.”
Those fundamentals involve rapidly dropping battery costs with increasing density – and that efficiency improvement is coming with reliability, too, Hyundai joining Tesla (and others) in delivering batteries good for hundreds of thousands of miles of driving. The tension, of course, comes from the fact that most batteries, today, are made in Asia.
Form Energy CEO Mateo Jaramillo says his company sources more than 80% of its battery content in the US and much of the rest from Europe and “non-China Asia.” And, while they’re working to re-shore even more, they remain exposed to heavily tariffed Chinese-made inputs.
Form eventually hopes to source raw iron from US mines in Michigan and Minnesota – and they’re not alone. Executives from other companies spoke up as well:
COVID-era disruptions across the global battery supply chain convinced Fluence that an energy storage market as robust as the United States’ needed a stronger domestic manufacturing base, Fluence Americas President John Zurancik said in the press briefing. The company’s U.S. investments are now bearing fruit as it expects to deliver its first U.S.-made lithium-iron-phosphate, or LFP, batteries this week for deployment later this year, he said.
Like Fluence, LG Energy Solution Vertech expects to significantly expand its U.S. manufacturing operations in 2025 and 2026. The South Korean battery powerhouse will adapt existing production lines at its Holland, Michigan, factory to deliver 16.5 GWh of stationary storage batteries this year and add 11 GWh of new capacity in 2026, its CEO said in a statement provided by ACP.
Even industry stalwarts like Wärtsilä have begun sourcing components for the container-based Quantum 3 BESS system we covered last summer from a geographically diverse set of suppliers, with manufacturing capacity across different regions of North America, Asia, and Europe. This should enable the company’s customers to take advantage of any local tax incentives while avoiding the kind of tariffs impacting global battery markets.
The ACP’s announcement adds about $85 billion to a set of “active investments” worth $10 billion to $15 billion, executives with the trade group said in a press briefing.
Electrek’s Take
Battery energy storage just makes sense – and it’s being leveraged in smart ways by companies like Zenobē, who are using smart BESS deployments to help hold down ratepayer costs while improving grid resilience and reliability. Volvo, too, is working to develop rapidly deployable BESS solutions that can support temporary job sites and disaster relief efforts.
Then there’s the rich people. Located in Abu Dhabi, the world’s largest storage project will feature a 5.2 GW solar PV plant coupled with a 19 gigawatt-hour (GWh) BESS. You can check that out here, then let us know what you think of all these projects in the comments.
SOURCE: Utility Dive; featured image via Wärtsilä.
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Ava Community Energy just rolled out a new program in California that pays EV and plug-in hybrid drivers for charging their cars when electricity on the grid is cleaner and cheaper.
The new Ava SmartHome Charging program, launched in partnership with home energy analytics platform Optiwatt, offers up to $100 in incentives in the first year. And because the program helps shift home charging to lower-cost hours, Ava says drivers could save around $140 a year on their energy bills.
EV and PHEV owners who are Ava customers can download the Optiwatt app for free, connect their vehicle, and let the app handle the rest. The app uses an algorithm to automatically schedule charging when demand is low and more renewable energy is available, typically overnight or during off-peak hours.
“Ava is on a mission to provide 100% clean energy to our customers by 2030,” said CEO Howard Chang. “This new program helps us get there by giving people an easy way to charge on more renewable energy while simultaneously saving money.”
Drivers who enroll get a $75 bonus for joining, and can earn an extra $25 per year if they stay enrolled. Optiwatt shifts charging to off-peak times, and it takes into account the customer’s individual schedules and preferences.
Casey Donahue, who founded Optiwatt, says this program is a win for everyone. “We can move a lot of energy use to cleaner, more affordable times by using smart algorithms and the growing EV base,” he said. “That benefits every Ava customer.”
The program is available to most EVs and plug-in hybrids. All it takes is signing up through the Optiwatt app (iOS, Android, or web) and completing a quick verification process. Savings and rewards start right away.
The Oakland-based not-for-profit public power provider aims to enroll at least 5,000 vehicles by the end of 2025. The company says this program is the first step in a broader virtual power plant (VPP) strategy. It’s powered by Lunar Energy’s Distributed Energy Resource Management System (DERMS) platform, Gridshare, which will help Ava coordinate energy from EVs, home batteries, and more.
Ava Community Energy was founded in 2018 and now serves 2 million people in Alameda County, California, and the cities of Tracy, Stockton, and Lathrop.
Read more: California now has nearly 50% more EV chargers than gas nozzles
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Environment
Jeep is teasing the new Grand Cherokee, but where’s the EV version of its best-selling SUV?
The Grand Cherokee is due for a refresh, and we just got our first look at it. Jeep claimed “the next chapter in the story of America’s best-selling full-size SUV begins” after releasing the first official images of the updated model. When will we see the Jeep Grand Cherokee as an EV?
2026 Jeep Grand Cherokee first look
Days after revealing the new Compass, Jeep is teasing another refreshed model, its best-selling Grand Cherokee.
Although it was the best-selling full-size SUV in the US last year, the Grand Cherokee is due for an update. The latest model was launched in 2021, but Jeep added a two-row version in 2022.
It remained Jeep’s top seller in the US last year with over 216,000 models sold, but sales were down 12% compared to 2023. It was also one of the best-selling plug-in hybrid (PHEV) vehicles, with over 27,500 4xe models
Jeep is giving us our first official look at the updated 2026 Grand Cherokee, inside and out. The first image previews the front end, which features new LED headlights and a revamped seven-slot grille, similar to the new Compass.
The interior is restyled with a simplified setup and other minor infotainment and climate control display adjustments. The preview also shows an added passenger screen.
When will Jeep launch the Grand Cherokee EV?
Jeep will continue to assemble the updated SUV in Detroit. The new 2026 Jeep Grand Cherokee will be available as a two-row, three-row L, and a plug-in hybrid 4xe, but when will we see an EV version? The outgoing 4xe model is already one of the top three selling PHEVs in the US, so a fully electric version would make sense.
As part of its 2023 agreement with the UAW, Jeep revealed plans to launch the Grand Cherokee EV in 2027. It was scheduled to be built at the Detroit Assembly Complex, but plans have likely changed since then.
Jeep’s new Compass will be available as an EV, but only in Europe. At least for now. Stellantis halted operations at its Brampton Assembly plant earlier this year, where the Compass is built, as it “reassesses its product strategy in North America.”
For those in the US, Jeep currently offers one EV. The Wagoneer S (pictured on the left above), Jeep’s first global electric SUV, starts at $65,200 and has a range of up to 294 miles.
Later this year, Jeep is expected to launch the Recon EV (pictured on the right above), a rugged electric SUV like a Wrangler.
Jeep is currently offering employee pricing plus an extra $1,500 cash allowance on top of the $7,500 EV tax credit on 2025 Wagoneer S models. If you’re looking to snag some savings, you can use our link to find Jeep Wagoneer S models in your area today.
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