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EV battery prices may drop 70% by 2025
Posted on 12 Jul 20126,861 Views2 Comments
According to a study Electric-vehicle batteries' cost may drop 70 percent by 2025
The cost of lithium-ion batteries used in electrified vehicles could tumble by more than 70 per cent by 2025 as rising oil prices and stringent fuel economy standards push automakers to build more of these cars, according to a McKinsey & Co study released on Wednesday.
Manufacturing these batteries on a larger scale represents one-third of the potential price reduction by 2025, McKinsey said. The expected influx of companies in the sector and new technology borrowed from consumer electronics makers like Apple Inc would also help cut lithium-ion battery costs, the consultancy added.
"Cheaper batteries could enable the broader adoption of electrified vehicles, potentially disrupting the transportation, power and petroleum sectors," McKinsey wrote.
McKinsey predicts the price of a complete lithium-ion battery pack could fall from between $500 and $600 per kilowatt hour now to about $200 in 2020 and to $160 by 2025.
If gasoline prices hover around $3.50 per gallon or higher, automakers that purchase batteries at $250 per kilowatt hour could offer electrified vehicles that can compete with cars and trucks powered by advanced internal-combustion engines, which are now significantly cheaper.
Battery costs represent one of the main hurdles to the widespread adoption of low-emission vehicles, analysts say. The US Department of Energy has set a goal to reduce the cost of a battery pack to $300 per kilowatt hour by 2014.
The 23-kilowatt-hour battery used in Focus Electric, Ford Motor Co's first electric passenger car, can cost between $12,000 and $15,000, Chief Executive Officer Alan Mulally said at a conference in April. That suggests Ford paid as much as $652 per kilowatt hour.
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Readers' opinions ( 2 )
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Sailesh chamadia
It's good but it was very costly
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Ashish S
Why 2025 ?These type of vehicles need govt attenetion worldwide. There is a need to find possibility of reducing cost so that such vehicles can be adopted for in city travel on wider scale.
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