Google plugs cash into plug-ins

Google.org, the philanthropic arm of Mountain View, Calif.-based Google (Nasdaq: GOOG), announced today that it made its first investments under its RechargeIT initiative, designed to accelerate the adoption of plug-in electric vehicles.

According to Google.org's official blog, the group put $2.75 million into Austin, Texas, battery developer ActaCell and Carlsbad, Calif.-based electric car maker Aptera Motors.

The ActaCell investment is part of a larger $5.8 million Series A
funding for the University of Texas at Austin spinout announced today
that was led by DFJ Mercury.

Google.org did not disclose how much cash it put into each company, but when it put out a request for proposals last September, the group said it planned to invest $500,000 to $2 million in selected for-profit companies working on plug-in hybrids, as well as companies developing electric vehicles, vehicle to grid solutions, and components or technology that can be used in electric vehicles (see Plug-in hybrids can Google for cash).

"Both of these innovative companies and their capable teams are working to develop technology that is crucial to helping us realize the RechargeIT vision: millions of plug-in vehicles on the road," said Karl Sun, an investments principal at Google.org.

In addition to DFJ and Google.org, the ActaCell funding included cash from Applied Ventures — the venture capital arm of Applied Materials — and Good Energies.

ActaCell said it will use the financing to hire key technical talent and to further develop its lithium-ion battery technology for commercial purposes. The company is focused on delivering a substantially longer cycle life at low cost while maintaining safety, and plans to disclose its technology in early 2009.

Aptera, which is developing a two-seat, three-wheeled electric and plug-in hybrid vehicle, pulled in approximately $20 million in financing last year from Idealab and an undisclosed angel investor.

The company plans to start production of the all-electric model later this year and the hybrid in late 2009.