EV battery costs break US$ 100/kWh mark for the first time

blackwasp · 20th December 2020, 15:39

Electric vehicle battery pack prices have fallen from Rs. 81,000/kWh (US$ 1,100) back in 2010 to Rs. 7,360/kWh (US$ 100) towards the end of 2020. The first batteries to break this threshold price were for e-buses in China.

While not all battery packs are available at this price point, the milestone signifies a significant reduction in the price of the single largest component of an electric vehicle. According to the BloombergNEF's battery survey, the average battery cost could hover in the US$ 100/kWh range by the year 2023. This would enable some EVs to be priced at par with their petrol-powered counterparts. On an average, the battery pack accounts for 21% of the total price of the vehicle. Currently, the average battery pack prices hover around the US$ 137/kWh price point.

Compared to 2019, battery prices fell by 13%. Some of the factors for the lower prices are higher order sizes, growth in EV sales and new design battery packs. Further, prices of the cathode material have fallen from a peak in 2018 to a much more stable level in 2020. Battery manufacturers are also able to achieve gross margins of upto 20% and a higher utilization rate of 85%.

Solid state battery technology could also be leveraged to further reduce battery costs. It is said that such cells could be manufactured at a 40% lower cost compared to the current lithium-ion technology.

EV battery costs break US$ 100/kWh mark for the first time-gm-battery.jpg

Source

Link to the Team-BHP News

Utham123 · 20th December 2020, 17:44

This is very good news for EVs in general. I hope this translates to more EVs in India. I definitely wish my next purchase to be an EV.

Vijay T · 20th December 2020, 17:55

Absolutely.
I also wish to have my next to be electric given the unmatched torque levels it gives .
It will be a dream come true if it becomes really affordable by 2023

Ultim8 · 20th December 2020, 21:16

Tesla was working with China's CATL to manufacture Lithium Iron Phosphate (LFP) batteries, which are cobalt-free to bring down the battery cost per kWh.

https://www.forbes.com/sites/jamesmo...h=6bbae746b42f

Tesla has this LFP battery technology ready, and it plans to manufacture LFP batteries for Tesla Model 3 for Chinese market. This will drive down the cost below the magic number of $100 per kWh.

starke · 21st December 2020, 08:51

Well, this might be the first official news, but so many OEMs already have gone around 87 $/kWh already. Again this USD/kWh value depends on so many factors that it even varies at different levels, so it is complicated to have a benchmark with this.

Where the actual opportunity lies is either a different technology like ASSB (All Solid-State Batteries) or Hydrogen fuel cell power generation in the coming years.

ASSB holds 50% more energy density at a similar cost of LiB, so a 1000 km vehicle with a similar price tag will be the consumer advantage whereas the FCV will take time to mature.

Again, India with humungous taxes and unconventional way of supporting EVs, we will have to wait further long.

20th December 2020, 15:39	#1
blackwasp Senior - BHPian Join Date: Apr 2015 Location: Navi Mumbai Posts: 2,974 Thanked: 26,325 Times View My Garage	EV battery costs break US$ 100/kWh mark for the first time Electric vehicle battery pack prices have fallen from Rs. 81,000/kWh (US$ 1,100) back in 2010 to Rs. 7,360/kWh (US$ 100) towards the end of 2020. The first batteries to break this threshold price were for e-buses in China. While not all battery packs are available at this price point, the milestone signifies a significant reduction in the price of the single largest component of an electric vehicle. According to the BloombergNEF's battery survey, the average battery cost could hover in the US$ 100/kWh range by the year 2023. This would enable some EVs to be priced at par with their petrol-powered counterparts. On an average, the battery pack accounts for 21% of the total price of the vehicle. Currently, the average battery pack prices hover around the US$ 137/kWh price point. Compared to 2019, battery prices fell by 13%. Some of the factors for the lower prices are higher order sizes, growth in EV sales and new design battery packs. Further, prices of the cathode material have fallen from a peak in 2018 to a much more stable level in 2020. Battery manufacturers are also able to achieve gross margins of upto 20% and a higher utilization rate of 85%. Solid state battery technology could also be leveraged to further reduce battery costs. It is said that such cells could be manufactured at a 40% lower cost compared to the current lithium-ion technology. Source Link to the Team-BHP News Last edited by vb-saan : 20th December 2020 at 18:45.
	(16) Thanks

20th December 2020, 17:44	#2
Utham123 BHPian Join Date: Sep 2020 Location: Bangalore Posts: 30 Thanked: 51 Times	Re: EV battery costs break US$ 100/kWh mark for the first time This is very good news for EVs in general. I hope this translates to more EVs in India. I definitely wish my next purchase to be an EV. Last edited by GTO : 21st December 2020 at 19:48. Reason: typo
	(1) Thanks

20th December 2020, 17:55	#3
Vijay T BHPian Join Date: Nov 2020 Location: Mumbai Posts: 96 Thanked: 119 Times	Re: EV battery costs break US$ 100/kWh mark for the first time Absolutely. I also wish to have my next to be electric given the unmatched torque levels it gives . It will be a dream come true if it becomes really affordable by 2023
	() Thanks

20th December 2020, 21:16	#4
Ultim8 BHPian Join Date: Mar 2020 Location: Chennai Posts: 30 Thanked: 79 Times	Re: EV battery costs break US$ 100/kWh mark for the first time Tesla was working with China's CATL to manufacture Lithium Iron Phosphate (LFP) batteries, which are cobalt-free to bring down the battery cost per kWh. https://www.forbes.com/sites/jamesmo...h=6bbae746b42f Tesla has this LFP battery technology ready, and it plans to manufacture LFP batteries for Tesla Model 3 for Chinese market. This will drive down the cost below the magic number of $100 per kWh.
	() Thanks

21st December 2020, 08:51	#5
starke BHPian Join Date: Jul 2020 Location: TOKYO \| KOCHI Posts: 250 Thanked: 946 Times	Re: EV battery costs break US$ 100/kWh mark for the first time Well, this might be the first official news, but so many OEMs already have gone around 87 $/kWh already. Again this USD/kWh value depends on so many factors that it even varies at different levels, so it is complicated to have a benchmark with this. Where the actual opportunity lies is either a different technology like ASSB (All Solid-State Batteries) or Hydrogen fuel cell power generation in the coming years. ASSB holds 50% more energy density at a similar cost of LiB, so a 1000 km vehicle with a similar price tag will be the consumer advantage whereas the FCV will take time to mature. Again, India with humungous taxes and unconventional way of supporting EVs, we will have to wait further long.
	(2) Thanks