Li-ion Battery Costs Fall to $397/kWh in 2020: Not Enough for Mass Adoption of Electric Vehicles
Early demand for electric vehicles and plug-in hybrid electric vehicles has fallen short of optimistic projections, as vehicles like the Chevy Volt have missed sales targets. The key to growing the market is reducing the cost of Li-ion batteries, according to a Lux Research report. While larger-scale production will help reduce costs, the effect of scale-up and likely technology improvements bring nominal battery pack cost only to $397/kWh in 2020 – far short of the $150/kWh target from the U.S. Advanced Battery Consortium (USABC) and not enough to reach the mass market.
To see what technologies can impact Li-ion battery cost, Lux Research studied the cost structure of Li-ion batteries, and considered the innovations that could drive disruptive decreases in cost necessary to spur growth of the electric vehicle market. Among their conclusions:
- Materials improvement and scale are insufficient to cut costs. While scale does have a significant impact in driving costs down, it is not likely to lead to a disruptive drop in battery pack costs unless coupled with other innovations.
- Cathodes remain the biggest target. Cathode capacity and voltage improvement hold much more value than anode innovation. In the optimal case, with a maximum voltage increase of 1V and capacity increase of 200 mAh/g, the nominal pack cost dropped 20%.
- Beyond Li-ion remains a focus. Technologies such as Li-air, Mg-ion, Li-S and solid-state batteries push past the limitations of Li-ion batteries and achieve higher energy densities and specific energies. Each technology has its supporters – PolyPlus and IBM for Li-air, Toyota for Mg-ion, Sion Power and BASF for Li-S and Sakti3 for solid state batteries — but all face significant obstacles. A clear leading contender that can meet strict requirements on cycle life, power performance, and manufacturability has yet to emerge.
The report titled, “Searching for Innovations to Cut Li-ion Battery Costs,” is part of the Lux Research Electric Vehicles Intelligence service.
Visit www.luxresearchinc.com for more information.
Publish your content with EB Premium
It's not about how many you reach. It's about who. Get your news, events, jobs and thought leadership seen by those who matter to you.
