In a high-stakes legal battle, the defunct Israeli electric vehicle (EV) firm Better Place’s patent owners are seeking $250 million from the Chinese automaker Nio, alleging unauthorized use of its pioneering battery technology.
The dispute centers around claims that Nio has been “exploiting, without permission or license, the Israeli Better Place model, technology, experience and IP,” thereby infringing on intellectual property rights.
Better Place, noted for its groundbreaking work in battery charging and swapping for EVs, filed for bankruptcy in 2013. Despite being based in California, its operations were spearheaded from Israel under the leadership of Shai Agassi. At its peak, the company had 21 battery-swapping stations across Israel.
Charge Peak, a firm registered in the British Virgin Islands and controlled by Canadian entrepreneur Larry Krauss, acquired Better Place’s patent portfolio post-bankruptcy. It currently holds exclusive rights to these patents within Europe.
Founded in 2014, Nio is now operating over 3,700 battery-swap stations in China and at least 60 across Europe, including 20 in Germany, as per a letter from Charge Peak. The letter accuses Nio of using technology covered by three European patents of Better Place.
Battery swapping, favored for its efficiency, is particularly appealing for long-distance travelers and those living in apartments without access to home charging facilities.
Nio has denied the allegations from Charge Peak. In a statement to the Financial Times, the automaker argued that its technology is “materially different from the three patents referenced in the claim” and highlighted its own portfolio of over 2,200 patents related to battery technology.
The company stated, “Such allegations are unfounded in both fact and law, and are inconsistent with the realities of technological development in the industry, as well as Nio’s actual R&D practices.” They emphasized that their technology comes from “years of independent R&D and continuous iteration,” and indicated plans to legally defend their “lawful rights and interests.”
Charge Peak’s letter insists on Better Place’s pivotal role in pioneering battery swap and EV electricity management, noting that its patents still hold considerable influence. The letter claims, “Nio’s strategic business advantage in building its $16 billion company has been its exploitation, without permission or license, of the Israeli Better Place model, technology, experience, and IP. This needs to be rectified immediately.”
Following the acquisition of Better Place’s IP portfolio in 2013, Charge Peak holds the foundational patent family for electric vehicle battery swap technology. These technologies were first deployed in Israel in 2010, four years before Nio’s establishment, facilitating battery swaps for vehicles and various OEMs (Original Equipment Manufacturers).
Charge Peak has set a deadline of June 5, coinciding with World Environment Day, for Nio to either negotiate a purchase of the entire patent portfolio or issue a cease-and-desist declaration. The latter would require Nio to compensate for damages, dismantle all stations using the contested technology, and cover legal expenses.
A potential agreement might involve both cash and shares, with Charge Peak demanding 2% of Nio’s 2025 global revenue, equating to $250 million based on projected earnings of $12.5 billion.
Commenting on the situation, solar entrepreneur Yosef (Yossi) Abramowitz, who once pursued the acquisition of Better Place before its sale to Charge Peak, remarked, “Israeli EV knowhow was unfairly exploited to build a $16 billion company, so asking for 2% of Nio’s 2025 revenues is not unreasonable.” He added, “Nio’s expansion plans in Europe are driving its share price, and so it’s time to make a deal.”
Original Story at www.timesofisrael.com