A man named Robert Anderson of Aberdeen, Scotland built the first electric vehicle in 1839. Dr. Ferdinand Porsche created the first, true hybrid at the turn of the century. That model could travel nearly 40 miles on its battery alone. So why has it taken hybrids another century to take off?

I’m sure many people have an answer for that question, but instead of starting a political or ethical debate, let’s just get down to a unique story that starts back in 1974.

From 1970 to 1976, as the price of oil was taking off, the Environmental Protection Agency (EPA) ran a secret research study, called the Federal Clean Car Incentive Program. There were eight applications accepted; only one was a hybrid. That hybrid was well before its time. Or so the EPA eventually ruled…

The hybrid application became reality in 1974 when its creator, Dr. Victor Wouk, and his partner, Charlie Rosen, created the first hybrid prototype to ever meet the EPA’s requirements. The duo used a 1972 Buick Skylark, one of the biggest gas-guzzlers of the era, and swapped its engine with the first petroleum-electric hybrid:

The new hybrid worked beautifully. It surpassed all the EPA requirements. But one EPA official single-handedly stopped this revolution dead in its tracks. Eric Stork, head of EPA’s Mobile Source Air Pollution Control Program from 1970 until 1978, was against hybrids from the start.

The now-78-year-old recently stated, “It’s just not a very practical technology for automotive. That’s why it’s going nowhere. It certainly wasn’t then. Even today, it’s marginal.” Now, we don’t want to get into it too deep, but what kind of research program would have any kind of success with that kind of attitude running it?

The program suddenly ended in 1976, and the company that Wouk and Rosen started to build this hybrid prototype fell apart when it ran out of money.

Wouk didn’t stop there though. He spent the next 30 years writing technical reports and petitions to get a second chance for hybrids. All for naught, though. There wasn’t anyone in Detroit paying attention. The other side of the world was a different story. In 1997, Japanese auto manufacturer Toyota released its still-industry-leader Prius. So, you guessed it… Wouk was a proud Toyota owner.

Since 1997, Toyota has sold 1.2 million hybrids worldwide. Compare that to the 17 million cars and trucks sold in the U.S. in just 2006, and you can see that hybrids have a long way to go. But, things are about to change…

Until today, modern hybrids use a nickel metal hydride (NiMH) battery. This type of battery is large, heavy and expensive. No wonder hybrids look so awkward and cost so much. The entire automobile industry agrees that we are on the verge of a brand new technology that will change it all.

Every hybrid maker, from Toyota to General Motors, agrees that Lithium-Ion (Li-Ion) is the future of hybrid batteries. Li-Ion batteries can be produced far cheaper, 35% lighter and 55% smaller than current NiMH batteries.

So be sure to keep an eye out for the first model to implement this technology…

Sincerely,
Jim Nelson
November 27, 2007

P.S.: While no one agrees if the perfect Lithium-Ion battery has yet been created, the “Big Three” auto manufacturers here in the U.S. are betting on one company to get it done. This company holds all the right patents and technology, along with studies and research grants backing it up. The best part is that the company only sells for around 60 cents a share.

Penny Stock Hybrid Cars was originally featured in the Penny Sleuth.