Cape Town-based Optimal Energy announced on Friday that it was gearing up for the start of mass production of its home-grown prototype Joule electric vehicle in South Africa in 2012.

Production volumes were estimated at an initial 50 000 units a year, said the company's executive manager for marketing Diana Blake.

This would mean Optimal Energy would qualify for incentives under the new Automotive Production and Development Programme (APDP), set to replace government's current automotive industry support scheme, the Motor Industry Development Programme, in 2012.

The APDP was set to provide incentives to plants with a production of around 50 000 units a year.

“We definitely want to qualify for the APDP,” said Blake.

It was estimated that 80% of Joule production would be exported, she added.

Optimal Energy's announcement came on the back of a further share issue to the Industrial Development Corporation (IDC), as well as the Innovation Fund, the technology investment division of the Department of Science and Technology, for a fourth round of capital investment.

Blake said this brought total government investment in the development of the Joule to roughly R155-milion.

She said the company intended to raise further private capital towards the end of this year.

“We estimate we need another R1,5-billion.”

Blake noted that there was more than sufficient interest in the project.

“We are speaking to a number of investors – mostly private investors.”

Optimal Energy had appointed Step Strategic Venturing, a professional services firm, to assist it with the development of its strategy, and with its capital raising process.

South Africans can reportedly look forward to seeing pilot fleets of the zero-emission Joule on the country's roads, and around the globe, from 2010 onwards.

The second prototype of the Joule was currently nearing completion, said Blake.

“Optimal Energy is capitalising on South Africa’s technological prowess, its track record of building premium cars for the export market, the current sea change in transport technology brought about by climate change, pollution and energy security issues, and the immense progress in battery technology,” noted Optimal Energy CEO Kobus Meiring.

“Optimal Energy aims to place South Africa at the front-line of the renewable energy movement with Joule. This investment helps us to drive the industrialisation process, taking us to the next level.”

Using a normal 220 V home outlet and Joule's onboard charger, it would take approximately seven hours to recharge the vehicle's battery for a 200-km driving range, with two packs providing a 400-km range in total.

Once production of Joule began, Meiring estimated that Optimal Energy, which currently employed more than 80 people, would increase its direct head-count to around one thousand employees, while a further 5 000 people would be employed in various related and support industries.

“We are in the process of selecting a site for our first assembly and manufacturing plant. The location of the plant will be announced later this year,” noted Meiring.

This plant could be at an existing vehicle production site, or it might be a completely new facility.

Meiring was previously programme manager of the Rooivalk Helicopter and Southern African Large Telescope projects.

The Joule was designed in association with South African-born automotive designer Keith Helfet, who had a long career as chief stylist at Jaguar, and was responsible for the designs of the XJ220, the XK180 and the F-Type models.

The six-seater Joule was set to retail for around R200 000, at today's prices.

Optimal Energy reported that the car's running costs would be one-tenth of a normal vehicle, as it would not use fuel, while also boasting longer service intervals.

Any Joule owner would only lease the battery, in order for Optimal Energy to ensure peak performance and proper maintenance.

Blake said the battery for the Joule would initially be imported, but that production was then to shift to the South African market, either by Optimal Energy, or by another supplier.

Meiring added that he did not expect the current global economic crisis to hinder the proposed production programme for the Joule.

“Interest in the vehicle has been enormous, both at a local and international level.

“The timing of this investment and the planned 2012 start of volume production is ideal. Current market conditions are slowing down the traditional manufacturers’ efforts, while the market, especially for clean vehicles, is predicted to be in a strong upward swing from 2012 onwards.”