Aussie EV start-up gets $5m federal grant

The federal government has awarded $5 million to Australian electric vehicle start-up ACE-EV as it pushes toward a late 2021 manufacturing start-up.

Established in Queensland in 2016 but now based in Adelaide, the company will use the money primarily to develop bi-directional vehicle-to-grid (V2G) recharging ability.

ACE-EV – or Australian Clean Energy Electric Vehicle – plans to launch with two models, the Cargo light commercial and Yewt ute in October 2021, and follow up with the Urban passenger car in 2022.

It had previously announced plans to launch as far back as 2019.

The $5 million was awarded under the auspices of the federal minister for energy and emissions reduction Angus Taylor and announced in the budget Tuesday night.

The budget also confirmed $74.5 million in spending on a Future Fuels Fund that will be administered via the Australian Renewable Energy Agency (ARENA).

Pre-announced last week, the fund is designed to help businesses and regional communities take advantage of opportunities offered by hydrogen, electric and bio-fuelled vehicles.

ARENA is expected to make more details on that pubic in the next couple of weeks.

ACE-EV’s model line-up has been designed in Germany and Taiwan. Based around a modular carbon-fibre chassis that takes only 18 hours to assemble, they will be built in Adelaide by a contractor, Aldom Electric Vehicle Manufacturing.

At the moment all models feature a 30kWh lithium-ion battery pack, 18kW e-motor and a range up to 180km. As yet unspecified drivetrain upgrades are coming before production commences.

Pricing is expected to start somewhere around $40,000.

ACE-EV hopes to eventually build up to 20,000 examples per year and export a significant number to right-hand drive markets like Japan and the UK.

Up to 40 vehicles will be built as part of the trial.

ACE-EV founder Greg McGarvie said the funding for the trial was secured with the assistance of South Australian independent federal senator Rex Patrick.

“We had a chat with him last October and he worked on this,” McGarvie explained. “He got it across the line for us.”

McGarvie said the trial will start early in 2021 and has a couple of unique elements. Firstly, it is for AC not DC electricity and the vehicle will have an onboard charger and meter.

“Effectively it’s like your house on wheels,” he said. “Our UK partners tell us it’s a global first and we are very excited by it.”

McGarvie admits the $5 million is just a drop in the ocean compared to the $20 million ACE-EV plans to spend on a development centre and $295 million it has budgeted for an assembly line.

But he still regards it as important.

“That $5 million is a pivot and shows there is a change in sentiment here in Australia,” he said. “It gives us a bit of encouragement. Someone else thinks what we are doing is worthwhile. We know it is because it is the future.

“My focus is getting something built and developed that is good for the next generation and pivots Australia into an era of smart manufacturing.”

McGarvie said the federal government’s investment would also encourage the offshore investors who are backing ACE-EV.

“It shows the government is starting to get serious,” he said.

ACE-EV is also commencing an autonomous vehicle trial with the Melbourne artificial intelligence solutions provider SenSen Networks.

That deal was announced last month.