Better Place, the Tel Aviv-based company launched in 2007 to develop a global network of recharging stations for electric vehicles, has filed for bankruptcy. The company said in its court filing on Sunday that it has cumulative losses of US$812m, assets of US$10m and that it owes US$40m to suppliers.
Renault, which partnered with Better Place five years ago to develop a recharging or battery-swap infrastructure in Israel and Denmark, said it was owed US$65m as a secured creditor.
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Despite the setback, Renault said in a statement on Monday that Better Place’s decision “does not at all call into question the electric vehicle strategy of the Renault-Nissan alliance.
“The Renault network in Israel and in Denmark will continue to provide after-sales servicing for Fluence ZE and these vehicles’ batteries.”
Renault and Better Place had an ambitious target to sell 100,000 Fluences in Israel and Denmark by 2016. Sales to date: about 1,240.
Better Place, founded in California in 2007, had a vision of creating a global network of ‘quick change’ battery swap stations starting in Israel, Denmark and Australia before expanding into the US, China and Europe.
Both Israel Corp, a conglomerate with a 30% stake in Better Place, and Renault turned down requests from Better Place for further funding to keep it afloat.
Founder and CEO Shai Agassi was replaced last October as the company tried to refocus on selling more EVs rather than trying to build more infrastructure.
