#1 cleantech news, reviews, & analysis site in the world. Subscribe today. The future is now.


Published on January 26th, 2012 | by Zachary Shahan


EV Battery Prices Dropping

January 26th, 2012 by  

EV battery prices are projected to drop tremendously by 2015. More info from sister site Gas2’s Andrew Meggison:

The special batteries used to power electric vehicles (EV) are expensive. However, there is good news for future EV consumers, EV builders, and EV enthusiasts. U.S. Energy Secretary Dr. Steven Chu in a recent speech predicted that the price of EV batteries could drop dramatically by 2015.

Technology is a funny thing. As the cost of goods and fuel increases the price of modern gadgets decreases. HD TVs used to cost thousands and now cost hundreds. Cell phones were once a luxury of the wealthy and now everyone has them and you can even get one for free. According to Dr. Chu, EV batteries will follow a similar trend, and less expensive EV batteries means cheaper EV prices.

“Overall, the Department of Energy is partnering with industry to reduce the manufacturing cost of advanced batteries. While a typical battery for a plug-in hybrid electric vehicle with a 40-mile electric range cost $12,000 in 2008, we’re on track to demonstrate technology by 2015 that would reduce the cost to $3,600. And last year, we set a goal of demonstrating technology by 2020 that would further reduce the cost to $1,500 – an accomplishment that could help spur the mass-market adoption of electric vehicles.”, said Dr. Chu in a speech to The Detroit Economic Club.

The trend of the dropping price of modern technology has, obviously, lead to more people buying and adopting the tech into their everyday lives – and fast. HD TVs went from the minority to the majority, ownership doubling from 2007 to 2008 alone. Cell phones have penetrated the American market by as much as 96% and are becoming the norm in developing nations worldwide; while 76% of Americans own a personal computer.

The fast adoption of these products has lead to some minor infrastructural issues such as the construction of more cell towers and the running of cables to provide internet service. Yet nothing really compares to what needs to be done from an infrastructure stand point to accommodate EVs on a grand scale. Some American cities are working to accommodate EVs in the near future but most are not. However if Dr. Chu’s predictions of cheaper EV batteries does come to pass, and the trend of dropping prices in technologies continues to lead to the fast adoption of that technology, plus gas prices continue to climb, it would seem likely that ownership of EVs will increase. This means more of a strain on regional power grids and a need for public charging stations to become a common sight in America.

Source: treehugger.com

Andrew Meggison was born in the state of Maine and educated in Massachusetts. Andrew earned a Bachelor’s Degree in Government and International Relations from Clark University and a Master’s Degree in Political Science from Northeastern University. Being an Eagle Scout, Andrew has a passion for all things environmental. In his free time Andrew enjoys writing, exploring the great outdoors, a good film, and a creative cocktail. You can follow Andrew on Twitter @AndrewMeggison

Tags: , ,

About the Author

Zach is tryin' to help society help itself (and other species) with the power of the word. He spends most of his time here on CleanTechnica as its director and chief editor, but he's also the president of Important Media and the director/founder of EV Obsession and Solar Love. Zach is recognized globally as a solar energy, electric car, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, and Canada. Zach has long-term investments in TSLA, FSLR, SPWR, SEDG, & ABB — after years of covering solar and EVs, he simply has a lot of faith in these particular companies and feels like they are good cleantech companies to invest in. But he offers no professional investment advice and would rather not be responsible for you losing money, so don't jump to conclusions.

  • Electric38

    Dr. Chu keeps pushing the time frame for a clean environment farther and farther out. Not too long ago he was saying how impossible this was (low cost battery development).
    He appears to be doing all he can to give the current pollution oriented companies time to sell their goods before new technologies appear.
    We’ve seen this same scenario occur in the electrical industry with light bulbs. Even though fluorescent and LED lights save lots of energy, time was given to get the incandescent bulbs off the shelves by keeping prices artificially high.

Back to Top ↑