How Advanced Battery Technology and Lower Costs Are About to Disrupt the Electric Car Industry
How advanced battery technology and lower costs are about to disrupt the electric car industry If car buyers haven’t hesitated over limited range and recharging infrastructure, the cars’ high upfront costs certainly has scared off many potential customers. Those high price tags are largely driven by the cost of the battery. Not all batteries are expensive, however, lithium-ion batteries are. Automakers switched from nickel metal hydride batteries to lithium batteries in commercial EVs because lithi- um-ion battery technology enables cells with higher energy densities (kWh/kg), higher power densities (W/kg), significantly higher cycle life and greater safety than other bat- tery chemistries. Currently, cost of these batteries is high, but it is expected that in- creased volume sales and technology improvements will significantly reduce the cost in the future. “When you move into an all-electric vehicle,” Ford CEO Alan Mulally recently told a For- tune magazine forum on green technology, “the battery size moves up to around 23 kWh, [and] it weighs around 600 to 700 lbs. They’re around $12,000 to $15,000 [each]” in a compact car the size of a $20,000+ gasoline-powered Focus. “So you can see why the economics are what they are.” Currently, customers pay about $520 per kWh for the batteries fitted to the electric Ford Focus, one of the more affordable vehicles available today. The price level the US Ad- vanced Battery Consortium is targeting for a fairly affordable electric car battery is about $125 per kWh. However, figures recently released by Lux Research, an independent research and advisory firm that focuses on emerging technologies, indicate that the low- est cost battery at the moment is produced by Tesla at $274 per kWh.
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