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The Changli is weird, about $1,000, and a surprisingly compelling vision of the future.

If you’re trying to solve a problem, it’s unlikely that anyone is going to look over your efforts, scribble things on a pad, scowl, and then say, “Have you tried half-assing it? Really phone it in?” This almost never happens. And yet it's precisely what I think needs to happen for electric cars to live up to their potential. They need to suck far, far more than they currently do. I know this sounds like what many experts would call “a terrible idea” and “stupid,” but I’m confident in this belief for one very notable reason: I’ve lived it.
For the past few years, I’ve used and enjoyed an electric car that is, by the standards of any EV available on the mass market today, terrible. I’m talking about something with about 1/10th the range, about 1/250th the horsepower (and that’s being generous), and maybe 1/5th the maximum speed of a modern EV. These are the sort of specs that should be charitably considered garbage.
And yet, despite it all, what I’ve learned is that not only are such meager capabilities enough for a shocking amount of my transportation needs, the whole experience has been downright fun. Yes, fun.
The car I’m talking about is called the Changli Freeman, and I believe it is the cheapest car in the world. In fact, that was the initial reason I bought it. You see, my job is to write about and do things with interesting cars, so when the pandemic arrived in 2020, that put a real crimp in my usual plans of traveling to people with strange cars all over the country and driving them, on video, to the delight of audiences in the high severals.
So, stuck at home, I hatched a new plan: I’d bring the interesting cars to me! Well, one interesting car, and that interesting car would be the cheapest new car one could buy.
My research brought me to a category of automobile that is known in their native land, China, as 老头乐, something that translates to “old man happy car.” That’s because this type of car is primarily sold to elderly folks in second-tier cities who need something to get to the market or pick up grandkids from school. Slow is just fine, and the legality of these cars, even in their native China, is muddy, at best. But they are definitely cars, of a sort.
At $930, the Changli was the cheapest of the cheap. Add in the necessary five 12V lead-acid batteries, which aren’t included in the base price, and the bill lurches up to $1,200, still absolutely, impossibly, floor-settingly dirt cheap for a new car of any kind.
Oh, and perhaps equally incredibly, I found this car on the website Alibaba.com, and bought it online, just like you would buy a video game console that looks like a Playstation 5 but perversely only plays 40-year-old Nintendo games.
Sure, shipping from China and all of the related customs hassles brought the total cost to about $3,300, but even so, we’re still talking about something wildly inexpensive. We’re still comfortably lying down on that bottom tier, and if you need further proof of this, here’s a video of me when I first got it and had to take it out of the massive cardboard box it shipped in:
Unboxing The World's Cheapest New Car Reveals It's So Much Better Than You Thinkwww.youtube.com
Now, aside from the fact that my new car arrived in a cardboard box, what you should note is my raw, unmitigated delight.
I had been genuinely ready to accept what would effectively be a plastic porta-potty-type body on a crude, flimsy chassis with a chain-driven axle and an effective operational lifespan roughly on par with your average mosquito. But that’s not what I got. What I got was a very cleverly-designed little car with an all-steel body, all the required legal lights and indicators, a windshield wiper, heater, radio with an MP3 player, and even a freaking backup camera. It was so much better than I ever could have imagined.
I later brought the Changli to Munro and Associates, one of the leading vehicular evaluation companies in the world, a place where major automotive manufacturers bring competitors' products to determine how they’re built and how much it costs to make them.
Sandy Munro, who runs the company, was genuinely stunned by what the Changli had to offer, and how it was made:
Sandy Munro Attempts To Demystify The Absurdly Low Cost Of The Changliwww.youtube.com
Remember, these are the reactions of someone who has torn down every major electric car on the market, from Teslas to Fords to BMWs. He knows what he’s talking about.
The specs on the car aren’t exactly impressive: 1.1 horsepower electric motor, 60V of batteries which gave a (tested) range of 27 miles, and a top speed of about 25 mph or so, though something around 20 was more common. My kid is able to run up a hill faster than the Changli can get up it. And yet, somehow, it works.
Here's What The World's Cheapest Electric Car Is Like To Drivewww.youtube.com
It actually does more than just work; it’s a usable transportation solution for far more of my normal transportation needs than I’d have ever guessed. While it may have come into my life as a curio, it very rapidly became an actually useful conveyance.
I used it to go to the grocery store. I sometimes took my kid to school in it, or to a friend’s house. I picked up take-out. I got parts from the auto parts store when one or more of my “real” cars needed repair. I met friends out at restaurants or galleries or clubs in town, and when I did, I could always park where no one else could, nose-to-curb or in tiny nooks behind dumpsters or any number of other small, forgotten spaces.
I did all of the sorts of mundane, low-distance, low-speed personal transportation acts that we all do, and which command a far larger percentage of our day-to-day transportation needs than many of us realize.
Now, I live in an environment where this sort of thing is perhaps unusually possible. It’s a college town, so there’s a lot of fairly dense commerce surrounded by a lot of low-speed streets, which makes it ideal for using a low-speed neighborhood electric vehicle (as it’s technically classed). According to the rules of this vehicle classification, which varies a lot from state-to-state, I can drive my absurd little machine on any street with a speed limit of 35 mph or less, though I think I can cross streets with higher limits.
There’s no highway travel, of course, but that’s not a restriction I’d need to be told to obey, as trying to drive this thing on a highway would be like shoving a sloth into the path of a cattle stampede. Were I to be in an accident with something like an F-150, I’d probably end up accordian’d like a cartoon coyote.
What I learned was that about 75% of my daily transportation needs could be accomplished with this shockingly minimal machine, and, even better, done with more fun than getting in a full-sized car. It was even easier than driving my regular cars! It was quiet and leisurely and everyone who saw this refugee from Cartoonistan greeted it with amused bewilderment or a smile or both.
Compared to a real EV like, say, a Tesla Model 3, this thing is a joke. But it’s a joke that can get to and from the grocery store in about the same amount of time when driving through town, and accomplish pretty much the same job, for a tiny fraction of the price and without hauling around an extra 3,000 pounds of car and battery that were, for the purposes of a trip like a grocery run, just dead weight.
There’s something in the automotive industry known as “vehicle demand energy,” which basically refers to the amount of energy needed to simply put the whole car in motion. The vehicle demand energy of a Tesla or a Ford Mach-E or even a Nissan Leaf is orders of magnitude higher than what the Changli demands, and for an awful lot of driving, that’s wasted energy.
If we’re really serious about using EVs to make a real dent in climate issues and energy usage, then we should adjust our thinking to make room for Changli-type vehicles.
Side by side with a “real car,” the Changli looks like a comical, shrunken subset, but compared to other minimalistic electric, low-speed transportation solutions like an e-bike, it feels like being carried in a luxurious, silken-draped litter. Unlike an e-bike, you’re still enjoying complete protection from the weather, and since you’re not teetering on a pair of wheels, but are rather cozily lounging inside a metal box, you can carry so much more stuff.
That’s why a minimal car-esque EV like the Changli is viable for transporting, say, tubs of Chinese food home or taking your kid to school: It’s a car, not a bike. It’s an obvious thing to note, but it’s a big deal when it comes to actually using the thing.
Sure, you can’t take a roadtrip in a Changli, but you knew that from the moment you looked at it. It is just a case of the right tool for the right job. Live somewhere dense, with a lot of low-speed travel? Maybe a Changli makes sense! Live on a compound and it’s a 45-minute trip if you need dental floss? Maybe not. There will always be a place for long-range, comfortable and safe EVs, capable of high speeds and long road trips, but they don’t need to be your daily driver.
Perhaps many of us will have small, fun, a-bit-better-than-Changli-type vehicles that we drive day-to-day, and then take majestic powerful, long-range EVs on the occasional road trip.
This doesn’t have to be a punishment. I’m a gearhead, I love cars and driving, and I can honestly say my driving experiences in the Changli have been a blast. I even took it to a track event. I’m pretty sure I hit 26 mph, and, like any car at its limit, it was pretty fun, making those bagel-sized tires squeal and feeling that tall, silly body lean and tilt like a drunk on an escalator.
Already in Europe we’re starting to see some realization that this sort of category is viable; French carmaker Citroën has a cheap, $10,000-ish car called the Ami that is classified under European quadracycle laws, which is essentially a category for low-speed city cars, which make a lot of sense the dense urban landscapes found all over Europe.
The Ami’s speed is limited to 28 mph (I suspect it’s technically capable of more), and it can go about 47 miles on a full charge, both of which are enough for the job it’s designed to do. The more I think about cars like the Changli and the Ami, the more I think they should be far, far more common than they are.
If we want to really change the transportation landscape in a way that’s good for the climate, is less demanding on the difficult rare-earth resources required to make EV batteries (for the resources that go into the battery of one full-range and power EV, you can likely make at least three short-range-use EVs), and yet still preserves so much of the personal transportation freedom that we’ve all grown to expect, then its time to really think about scaling down the sorts of vehicles that we use for all the little drives we do.
And, remember, it’s not a punishment. It’ll be fun. I know, because, again, I’m doing it, in the most minimal, ridiculous way possible.
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Just look at Heatmap’s latest poll results.
A few times a year, Heatmap News surveys a few thousand Americans on the biggest questions driving the world of energy, environment, and climate change. We’ve spent the past few days writing up the results of our latest poll, which was in the field in late May and which I thought was particularly striking.
It’s worth taking a step back to look at the biggest results together, because the American view of data centers is essentially in free fall:
The upshot of these findings: The public‘s turn against artificial intelligence and AI infrastructure is real, widespread, and cross-partisan. It doesn't matter whether Americans started out tolerating data centers or having no opinion about them; they now seem to resent them en masse.
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These results also suggest Americans see little distinction between data centers as energy users and data centers as the physical embodiment of AI and Big Tech. At Heatmap, we can be a wonky and energy-focused bunch, and so we tend to think about data centers primarily as large-scale electricity users. I think most approaches to come up with “data center policy” do the same. We know data centers are distinctive in some ways, of course — an AI data center might require more on-site batteries or power generation than, say, an EV factory — but fundamentally it is just another air polluter, large-scale power user, and light-industrial land user.
But the public does not see things this way. Americans understand data centers in the context of the much broader AI policy conversation about jobs, growth, alignment, and even human extinction. And so, I should add, do politicians: Senator Bernie Sanders has framed his data center moratorium proposal as a response to rapid AI development as much as anything having to do with energy affordability. For that reason, I wonder how long the distinction between these two policy conversations — data centers here, and AI policy over there — can persist.
One last thought on this topic: Is the public’s resentment starting to affect the AI boom overall? I think it might be. It was hard for me not to think of our polling results — or our analysis of canceled data center projects — as I read about a recent JPMorgan analysis that found America’s data center boom is “falling way behind schedule,” in the words of The Wall Street Journal. More than 60% of the data center capacity that is supposed to come online next year has yet to break ground, according to the bank; another 7% is “delayed.”
That’s partially due to equipment and labor shortages, but it also might be what a siting-and-permitting bottleneck would look like. Much like renewable developers or venture capitalists, data center developers work by picking a number of sites and trying to develop on all of them. If only a few sites work out, they’re still in the money. But if a falling share of projects are working out — if building anything, anywhere, is getting harder, everywhere — then it might materialize as delays.
Plus more of the week’s big money moves in critical minerals and electric vehicle charging.
Two of climate tech’s hottest sectors — fusion and critical minerals — dominated this week’s funding headlines. Helion led the pack with its $465 million Series G, helping to push the startup with the sector’s most aggressive commercialization timeline one step closer to putting power on the grid. The round follows last week’s news that German fusion startup Focused Energy secured a $240 million Series A, making it Europe’s most valuable fusion company.
Then there’s the critical minerals. Shortly after venture firm Gigascale Capital announced the close of its $250 million fund targeting the physical clean energy economy, it announced one of its first investments: Red Metals, a startup working to bring copper refining back to the U.S. Terra AI, which is using artificial intelligence to identify promising sites for mineral extraction, also landed fresh funding. Rounding out the week’s deals, EV charging and energy services company InCharge also raised a new round as it looks to expand into a broader suite of energy services.
Leading fusion startup Helion has nearly tripled its valuation with its latest $465 million Series G round, which aims to help the company deliver commercial fusion power this decade — the most ambitious timeline in the industry. Per the terms of the power purchase agreement Helion signed with Microsoft in 2023, the startup plans to turn on its first commercial reactor just two years from now. That’s far sooner than even its most precocious competitors, who aim to put fusion power on the grid by the 2030s at the earliest.
Joshua Kushner’s venture firm Thrive Capital led the round, which also included participation from new investors including Lux Capital and Alta Park Capital. Thrive now values the company at $15.5 billion.
“The investors that have joined this round, it’s institutional capital, some very marquee investors,” Helion’s CEO David Kirtley told me, explaining they were willing to back an unproven technology thanks to a series of recent milestones that Helion’s latest prototype reactor, Polaris, achieved. “Polaris earlier this year set records for temperature and fuel. We’ve also reduced a lot of the business risk on the regulatory front, the commercial front, and the actual supply chain, too.” In February, Polaris became the first reactor developed by a private fusion company to operate on deuterium-tritium fuel — the most common fuel in the industry — and to achieve a plasma temperature of 150 million degrees Celsius.
Helion differs from many of its peers pursuing more established reactor concepts such as tokamaks, stellarators, or laser-driven inertial confinement. Instead, Helion’s tech uses powerful magnets to collide and compress two fusion plasmas together, generating temperatures over 100 million degrees Celsius and triggering a fusion reaction. It then seeks to capture the electricity this reaction generates via electromagnetic induction — no steam turbine required — similar to the way regenerative braking works in an electric vehicle. If successful, the approach could enable smaller, more modular fusion reactors than conventional designs would.
While the company had originally aimed for Polaris to demonstrate electricity production from fusion in 2024, that date came and went with no new goal set. Kirtley told me that Helion remains on track to meet the terms of its agreement with Microsoft, however. The startup broke ground on its commercial reactor site last year in Malaga, Washington, where it already has access to a substation and grid interconnection from a dormant aluminum smelter. In addition to building out this facility, Helion also plans to use its new funding to boost production at its electrical component manufacturing plant in nearby Everett, which Kirtley said opened earlier this year.
As investors pour billions into artificial intelligence and the infrastructure supporting it, former Meta CTO Mike Schroepfer has raised an inaugural $250 million fund for his venture firm, Gigascale Capital, which is focused on the physical clean energy economy. This represents Gigascale’s first institutional fundraise since its founding in 2023; until now, the firm’s investments have come entirely out of Schroepfer’s own pocket.
The fund will target early-stage companies working in clean energy, grid infrastructure, critical minerals, and AI-enabled design and manufacturing, while reserving capital to continue backing its portfolio companies as they scale. Gigascale has already backed a number of big names in the space, including Commonwealth Fusion System, iron-air battery developer Form Energy, solid-state transformer company Heron Power, and clean baseload power startup Arbor Energy.
It’s also already begun investing out of this new fund, announcing this week that it led a $10 million seed round for critical minerals company Red Metals, which also included participation from JB Straubel, founder and CEO of the battery recycling company Redwood Materials. The company aims to help reshore copper refining in the U.S., and will use this fresh capital to support the development of a $70 million refining facility in Charleston, South Carolina. Red Metals says its process can convert copper scrap directly into a finished copper product, bypassing several of the costly and emissions-intensive intermediate steps typical of conventional refining.
The investment offers a window into the kinds of companies Schroepfer is most interested in — businesses that might lack the glamor of an AI startup but represent bipartisan opportunities to address core industrial bottlenecks. Copper, for example, is essential to all sorts of clean energy infrastructure, including transformers, power lines, and anode battery materials, but also critical for defense technologies such as radar systems and ammunition. Yet American copper production has been on the decline, with analysts projecting that the U.S. will face a refined copper shortage of over 2.5 million metric tons annually by 2035.
Sustainability-focused firm S2G Investments has been on a roll recently, announcing a $1 billion fund last month that aims to fill climate tech’s “missing middle” and backing Goshe Energy Storage with up to $40 million in strategic financing last week. Its latest move is leading a $46 million strategic investment round for InCharge Energy, an EV charging and distributed energy management company.
InCharge got its start installing and managing electric vehicle charging stations, and is now operating more than 30,000 assets across North America. Through its software platform and network of technicians, the company handles all monitoring, diagnostics, and on-the-ground repairs, taking on a charger’s full lifecycle to minimize downtime. With this new capital, InCharge plans to expand beyond EV charging and leverage its software and field service network in adjacent industries, including electrical infrastructure work such as panel upgrades and wiring repairs, as well as distributed energy resources like rooftop solar and battery storage systems.
“EV charging was the entry point, but our customers increasingly need help operating more complex energy infrastructure,” Rich Mohr, InCharge’s CEO said in a press release. “This investment from S2G accelerates our evolution into a full energy solutions provider and allows us to advance smarter technology and strengthen our service capabilities nationwide.”
It’s a hot week — nay a hot year, for critical minerals and subsurface exploration startups, especially for those pairing geology with artificial intelligence. AI-powered mineral exploration company KoBold Metals has raised about $1.2 billion to date, while geothermal exploration startup Zanskar has brought in about $220 million.
Now, another entrant is attracting investor attention. Terra AI has raised a $20 million Series A led by Khosla Ventures to help do it all — use AI to identify prospective sites for critical minerals mining, next-generation geothermal development, and permanent carbon sequestration.
Terra’s platform integrates vast geological and geophysical datasets to generate 3D subsurface models, as well as risk assessments that allow teams to evaluate a range of potential geologic scenarios. From there, the team can identify the best sites for exploratory drilling and thus reduce risk and uncertainty much sooner in the project’s lifecycle. The company even uses what it calls “geology reasoning agents” to help operators create their exploration plans, all with the goal of drastically reducing the notoriously long timeline between discovery and production, which can stretch to nearly two decades for many subsurface projects.
“Minerals sit at the center of every major technology and infrastructure transition, but today’s exploration results are not keeping pace with demand,” Terra’s CEO John Mern posted on LinkedIn. “Our mission is to advance the frontier of AI into the geosciences and help supply the metals and resources the next generation needs.”
One of the biggest fusion funding rounds of the year landed last week, and somehow much of the media — including me — missed it. German fusion startup Focused Energy raised a whopping $240 million Series A led by RWE, one of Germany’s largest energy companies. Yet unlike most deals of this magnitude, it arrived with little fanfare: No press release in my inbox nor a flood of headlines. So in the interest of making up for lost time, here are the details.
With this latest round, which also includes participation from the German Federal Agency for Breakthrough Innovation, the European Innovation Council Fund and Prime Movers Lab, Focused Energy has become Europe’s most valuable fusion company. Like several other leading players, including Inertia Enterprises and Pacific Fusion, Focused Energy relies on an approach known as inertial confinement fusion. This involves using powerful lasers to compress a tiny fuel target, creating the extreme pressures and temperatures required for a fusion reaction. To date, inertial confinement remains the only approach to have demonstrated net energy gain, with Lawrence Livermore National Lab achieving this milestone in 2022.
The startup plans to use this latest funding to build out a demonstration plant in the German state of Hesse, at a site where RWE formerly operated a nuclear fission plant. The company ultimately aims to build a commercial reactor by the mid-2030s.
Catching up with the American Council on Renewable Energy’s Ray Long.
Today’s chat is with Ray Long, CEO of the American Council on Renewable Energy. We first discussed the odds of permitting reform a year and a half ago, for one of the first Q&As in The Fight. Flash forward and we’re still in the same situation, but now also wrestling with added demand for electricity to power data centers. I wanted to talk again about whether he thought the rise of artificial intelligence would increase the odds of some federal deal happening any time soon. The result: a wide-reaching conversation about the future of the electric grid, the struggles to win community buy-in and the sclerotic nature of the U.S. Congress.
The following conversation was lightly edited for clarity.
Do you think the buildout of our energy grid is entwined with the rise of the nation’s data center buildout?
When you look at what we need over the next four years — 166 gigawatts, 15 times the peak load of New York City — that’s a lot of power to build. Roughly half of that is for data center and AI growth.
There are five things we can build in the next four years at scale to address that collective amount. First, it’s transmission — the transmission buildout will help to get a modern grid to enable power flow to where it’s needed in a much more effective way. That’s the first step because if we just build all that power, the current grid can’t handle it.
Second, there are four supply technologies that can be built: solar, batteries, wind, and natural gas. All four of those technologies, we know there’s enough equipment here in the U.S. available for purchase that we can build at volume. And I’ll say this — natural gas is only about 10% of all those gigawatts because of the availability of turbines from suppliers. You can’t get enough over the next four years. So when I talk about decarbonization, most of what is built to address this issue is zero-carbon resources, renewable energy resources.
If you were to compare the current conversation around data center development to the debate over developing renewable energy in the U.S. — or energy in general — do you see any similarities or differences?
There are always issues with permitting projects. Communities are always going to have concerns about what’s built in their backyards.
What’s new — and your polling shows this — is the level of concern communities have. But here’s the thing: Most of this can be overcome by developers going in, listening to what the needs of the communities are, then responding and through the permitting process addressing those concerns. You can’t do that 100% of the time. But my experience is, when you take that sort of approach, you can overcome a lot of it.
Most of the large data centers are actually doing the things I’m discussing — going in and saying, Look, we want to be grid interconnected because grid connection at the end of the day means the resources we’re bringing to bear are also going to make a stronger grid. Number two, it's investing in power generation sources like the ones I said — and those power sources will be on the grid, so they’ll solve for the increased power demands of a community.
Third, water. They should bring the water solutions. You’re seeing data centers coming in and saying it head on now, that they have closed-loop systems or whatever the solution is. At the end of the day, the communities they’re proposing these in have a real negotiating opportunity to make sure they’re holding the data center developers accountable to the needs of the community.
For a community to say we don’t want it here misses a real opportunity for those communities to get the power they need, the grid they need, and the ability to bring down energy costs.
How is the data center debate affecting permitting reform conversations in Washington, from your perspective?
Permitting reform in the U.S. at the state and federal level has been broken for years. The SunZia transmission project? It took 17 years to permit. Ribbon-cutting is in a week or two and there’s still litigation around it. From a business perspective, it’s just untenable, and it’s a miracle that the project is getting built. Developers need a chance to come in and have their project evaluated. Both the community and the developer should be able to get to a go or no-go in a couple of years on one of these projects.
How is data center growth affecting the permitting reform discussion? It’s a very hot issue right now. Right now I think in part because the data center issue is so huge — because we’ve only got four years to solve for the first really big tranche of power we need and prices across the board for electricity are escalating — this is coming to a head. The data center load is a part of the catalyst to get people talking about it [permitting reform].
Do you expect legislating in Congress on permitting reform this year? Anything beyond more conversation?
My hope is that we get a bill. A few weeks ago someone from the administration was quoted as saying they wanted a framework for a bill by the end of May, and it’s June now. We haven’t seen both sides or the administration coalesce around a final project yet.
We’re in a midterm election cycle. Typically it’s very difficult during these cycles to move bills like this. At the same time, with electricity prices increasing and the need to build more, to fix this, I’m very hopeful something will come together. And look at the Senate — you’ve got Republicans and the Democratic ranking members talking about this. It’s all good signs.
If everyone’s talking about energy and affordability during this election, isn’t that a good thing for action in the next Congress?
I’ll say this: You’re seeing the catalyst for it right now with prices rising, and almost every grid operator around the country has raised concerns about shortages at some point this year or next year. It’ll hopefully be enough to have policymakers do something about it this year.