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Cars Cost of Lithium Ion Batteries to Fall

Published on March 13th, 2012 | by Charis Michelsen

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Lower Battery Cost, Get Less Expensive EVs

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March 13th, 2012 by  

 
Cost of Lithium Ion Batteries to Fall

Electric vehicles aren’t exactly cheap to purchase, and one of the main factors in determining EV price is the cost of the battery packs. The cost of EV batteries, however, is good news — according to a new report from Pike Research (a cleantech marketing and research firm), installed lithium ion battery cost is expected to fall by about a third over the next five years.

If You Build It, They Will Come (Sometimes)

The main driving force for the lithium-ion battery market is, of course, the rising tide of electric vehicles and plug-in hybrids. As gas prices increase, the EVs available improve, and as carbon emissions become more strictly regulated, electric vehicles are expected to slowly reshape the automotive industry and market. Improving battery technology and bringing down battery cost will do much to address the two main issues consumers have stated with EVs (range and vehicle cost, namely).

Research director John Gartner concluded that the market for lithium batteries would grow seven-fold in size — from $2 billion annually to $14.6 billion annually — to match pace with the expected growing popularity of electric and hybrid vehicles. In his words:

“The market for Li-ion batteries will be driven primarily by plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs), which require much larger battery packs than hybrids. Battery chemistries that prioritize energy capacity over power density can satisfy both the PHEV and EV battery segments, enabling vendors to offer products to multiple vendors for multiple models. Reducing the installed price of EV batteries to $523 per kilowatt hour in 2017 will be a critical step towards making PEVs cost-competitive with petroleum-powered vehicles.”

Keep Improving the Mousetrap

Current lithium-ion battery technology gives most battery electric vehicles a range of 30-100 miles (depending on make, model, and size of both the vehicle and the battery pack). Although the average American driver goes no more than sixty miles a day, range anxiety — the fear of ending up without power and unable to charge the car to get home — is a popular concern. Also worrisome to many drivers is the lack of a charging infrastructure.

Battery makers, on the other hand, are faced with the challenges of high energy density, safety and the public perception thereof, and the charge/discharge rates. Various types of batteries are available, but none of them have everything (yet).

Pike Research’s report, Electric Vehicle Batteries, can be downloaded from their website. It also outlines governmental roles around the world in supporting the EV market, as well as key market drivers in the spread of electric vehicles.

Comments or questions? Let us know below.

Source: Business Wire | Image: Wikimedia Commons

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About the Author

spent 7 years living in Germany and Japan, studying both languages extensively, doing translation and education with companies like Bosch, Nissan, Fuji Heavy, and others. Charis has a Bachelor of Science degree in biology and currently lives in Chicago, Illinois. She also believes that Janeway was the best Star Trek Captain.


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  • Bob_Wallace

    Pike seems to be constantly behind the curve.

    Apparently EV batteries have already hit $400/kW.

    http://www.greentechmedia.com/articles/read/ev-batteries-dropping-rapidly-in-price/

    Every study I read from Pike seems to fall short of the mark.

    —

    And here’s a company to watch – Envia. They are claiming 3x the range per pound of battery. Think a Nissan Leaf with 210 to 360 mile range but weighing no more than the current model. And their capacity claim has been verified by an independent testing lab.

    Envia also claims $125/watt, which is about 1/3rd to 1/4th of current (best) battery prices. If 2012 Leaf battery prices were $600/watt as some claim this would drop the price of a “100 mile range” Leaf from $32,500 to about $21,000. (Even less because less battery weight would mean fewer kWs to purchase.)

    (2012 purchase contracts were apparently in place before prices fell to $400/watt. 2013 models should show a drop in price.)

    An additional interesting thing about Envia is that they do not intend to become battery manufacturers. They plan on licensing their technology to existing battery manufacturers which means that if they aren’t blowing smoke then we’ll see these batteries come to market much sooner.

    Manufacturers would simply have to change the way they manufacture their cathodes, the rest of the cell is ‘business as it is being done’.

    Envia also states 1,000 cycles. Put these in a “200 mile range EV” and they would be 200,000 mile batteries. The car would wear out before the batteries would have fallen to 80% capacity. You’d be driving a 180 mile range “hunk o’ junk”.

    http://thinkprogress.org/romm/2012/02/28/433434/envia-gm-doe-lithium-ion-batteries-cut-costs-in-half-triple-energy-density/

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