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Will batteries drop to $200/kwh by 2020

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by austingreen, Oct 1, 2012.

  1. austingreen

    austingreen Senior Member

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    Read more: http://www.digitaltrends.com/cars/study-says-cost-of-lithium-ion-batteries-could-drop-by-two-thirds/#ixzz284SkjJaa

    This is faster than the DOE projections of $300 by 2020. If it happens a 16kwh pack,(Max tax credit) will drop in cost by $4800 (16 x ($500-$200)). Other drops in motors, inverters, electronic power steering and electronic air conditioning should mean that prices will drop more than the $7500 tax credit if McKinsey is right. A tesla 85kwh battery pack should drop to cost $17K from a likely $43K today. Its unknown what prices manufacturers will pass on to consumers, but it could be most of it with the higher cafe standards.


    I think the excitement factor is why electrified city cars won't sell. You want a bigger car to put a bigger battery and more acceleration. Until at least 2020, I expect phevs to outsell bevs, but if we get these cost reductions, and people get used to the technology, that could switch.

    Dropping battery and electronic accessory costs will also make hybrids less expensive.
     
  2. bisco

    bisco cookie crumbler

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    yes.:)
     
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  3. rockfeller

    rockfeller Junior Member

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    Demand for electricity goes UP also.
     
  4. austingreen

    austingreen Senior Member

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    Yep, electric consumption is up about 11% in the last decade and we should expect it to continue to go up. Plug-ins will be a tiny part of that increase over the next decade though. Coal to produce that electricity is down about 8% from 1999-2011. We should expect it will decrease much faster now, that there are stronger epa regulations and more natural gas ccgt power plants built. Plug-ins may help boost renewables as a percentage of the grid, and reduce oil imports. The numbers will be low for the next decade though. We use a great deal of electrical power in this country.
     
  5. rockfeller

    rockfeller Junior Member

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  6. SageBrush

    SageBrush Senior Member

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    Prices *may* drop to $200 kwh, or they *may* NOT.

    This is news ?
     
  7. wjtracy

    wjtracy Senior Member

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    ..."effective" price for the Li battery, whereas:
    Effective Price = Batt Price - ($7500 fed rebate + state rebates)
    may not go down too much by 2020.
     
  8. austingreen

    austingreen Senior Member

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    Right, for vehicles with packs between 4kwh and roughly 20kwh, when the tax credit runs out, effective consumer price for batteries will be roughly where they are now. If this study is right a c-max energi sized battery will cost a manufacturer roughly $1500.

    For hybrids lithium will get much less expensive than nimh, this should help manufacturers bring cost and weight down. For larger batteries like the tesla S, large reductions of cost will occur.
     
  9. enigma88

    enigma88 Junior Member

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    Sorry to bring back an older topic.
    But if batteries use lithium ions, wouldn't the price of the batteries go up as the availability of lithium goes down?
     
  10. ItsNotAboutTheMoney

    ItsNotAboutTheMoney EditProfOptInfoCustomUser Title

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    Lithium is actually a very small component of the cost so is not likely to be a significant factor in pricing.

    There are only perceived lithium supply constraints because the cheapest sources are limited. If the price were to increase the "economical" supply would jump significantly, not least because lithium recycling would become economical.
     
  11. austingreen

    austingreen Senior Member

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    We are talking about the price of a ltithim battery the size needed in a prius of dropping to around $200-$300, much lower than the cost of nimh today. Lithium material cost will go up, but not much lithium will be used.
     
  12. ItsNotAboutTheMoney

    ItsNotAboutTheMoney EditProfOptInfoCustomUser Title

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    Yes, but with proper policies in place plug-in electric vehicles should make electricity cheaper.

    Why?
    - The natural idle time (and therefore charging time) for plug-in vehicles is off-peak. Off-peak electricity use charging adds demand when there is plenty of spare capacity, meaning that the percentage utilization increases without lowering the grid efficiency. The result is that the infrastructural cost per kWh decreases.
    - Because consumers with plug-ins will have a higher percentage of off-peak use, a time-of-use tariff becomes more appropriate and affordable. Once a consumer has a time-of-use tariff they have more incentive to lower other peak use and shift other use off-peak, further improving efficient grid utilization.
    - Since a plug-in vehicle owner increases their electricity use, a significant amount of the prior expenditure on gasoline now goes to utilities. Combined with higher grid utlization this should allow for more investment in infrastructural improvements that can further improve efficiency, such as better interconnects to allow wider distribution or accept more intermittant sources such as wind and solar.
    - With a large number of plug-in vehicles on the grid a large demand sink would become available. Given that cars are idle for long periods, often longer than is needed to charge them, it would be possible with "smart charging" to balance other demand. (I don't think vehicle-to-grid is as easy or likely because it requires the ability to supply the grid. Availability of vehicle-to-grid would depend more on solar continuing to fall in price).
    - Even if smart charging isn't available, cheap batteries would make it easier for generators and utilities themselves to make use of batteries for storage. To have a significant effect, grid storage doesn't have to have enormous capacity: it just needs to have enough capacity and charge and discharge capacity to provide enough of a buffer that it has a measurable effect in reducing the variation in peaker plant output, or increasing the allowed output from intermittant sources.

    But note, this requires good policy in place. For example:
    - encourage home TOU tariffs
    - discourage provision of free public charging; encourage public charging based on TOU rates
    - treat free workplace charging as a taxable benefit; encourage metered charging.

    Studies have indicated that PEV owners will charge opportunistically. Opportunistic charging is a bad thing when it happens near peak demand. For now, the small number of PEVs means it's not such an issue, but as volume increases, it will become more relevant.
     
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  13. bwilson4web

    bwilson4web BMW i3 and Model 3

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    In spite of price reductions, the air-breathing and combustion gas exhausting power systems have a weight advantage because they only have to carry one reactant, the fuel. The other reactant is oxygen from the air and the combustion-products are tossed overboard significantly reducing the mass. In contrast, a closed-cycle battery carries both reactants and their by-product(s). This mass problem gives the open-cycle, air-breathing and exhausting power systems an advantage that regardless of price is hard for batteries to overcome.

    The reason we have hybrids is the battery subsystem compensates for inefficient modes of the air-breathing engine. It allows an efficiency optimized engine to perform almost all of the time at or near peak efficiency which non-hybrids can never match with equal payloads and acceleration . . . even turbo-diesel cycles.

    Bob Wilson
     
  14. austingreen

    austingreen Senior Member

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    Not really much of an issue, the limited capacity of batteries are easily overcome by a range extended or blended mode phev. The problems with these versus the ice is all about costs.

    When it comes to range, if batteries become cheap enough and small enough, there will be a point where a large percentage of the population will be happy with a bev. That day is not today though.
    For some modes battery to motor to wheels is simply a battery system than tank to ice to wheels. Then the question really becomes to you charge the batteries from the wall or from burning gasoline in the car. For many of us, the plug makes more sense. :) The problems are weight, volume, and cost of the battery. If these technologies improve weight won't be much of an issue only volume and cost.
     
  15. ItsNotAboutTheMoney

    ItsNotAboutTheMoney EditProfOptInfoCustomUser Title

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    I think it's an overstated issue. Weight matters much less at high speeds, and an ICE is inefficient at low speeds. The limitation for batteries is the volumetric effect of low density.
     
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  16. bwilson4web

    bwilson4web BMW i3 and Model 3

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    I'm seeing the thermodynamic efficiencies of the ICE in our hybrids are close to power plant efficiencies . . . pre-grid. The grid itself reduces the power plant, net energy.

    The only amount of electrical power needed in a hybrid is enough to keep the ICE in efficient modes and that turns out to be rather modest . . . very close to what our current Prius has for that size of vehicle. However, I would like the option of 'topping' to provide initial ICE warm-up, especially catalytic converter light-off.

    The advantage of a vehicle resident ICE is weight starting with fuel that translates into range. Whether fossil or bio, using air for one reactant and dumping the products overboard, works for me.

    If (when) battery costs decrease and more capacity is available, I'm a happy camper but not necessarily an eager shopper. But it is good to have choices.

    Bob Wilson
     
  17. austingreen

    austingreen Senior Member

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    Bob, YMMV depending on your priorities, and what you consider efficiency. Here in central texas, wind turbines might not be terribly efficient, but they are less expensive than oil, and provide American jobs. Substituting wind for oil seems like a good trade off, and for other places trading solar for wind is a good trade off. But if you limit the idea to efficiency but don't care about fuel, you may be right.

    Think of it this way, if you are doing the charging infrastructure, the prius phv with 11 mile range are 4.4 kwh, or about 3.4 kwh bigger than you would need in a prius. If it is $200 more per kwh that is only $680, likely $1000 after mark up no tax credit. A bigger battery is likely appropriate at that price level with more range.

    You need to be an initial adopter to buy a phev:) today. But think of it this way, many would rather pay less money to their electric utility than to the gas stations. A larger range justifies checking out to make sure your house circuits work well.
     
  18. spwolf

    spwolf Senior Member

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    i am not so sure that availability of lithium is such large issue right now... the fact that China put some restrictions means that mines are now being opened around the world.

    Toyota purchased rights to mine in Argentina that can cover all needs of Japan for lithium... Japan, not just Toyota. And as we know, lithium is already used a lot in computing, probably more than it will be used for next decade in automotive applications.
     
  19. kgall

    kgall Active Member

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    Thanks for explaining that. I never thought of it that way--it's alomst a metaphor for all externaliies, where you impose costs on someone else through your own (economic actions).

    I wish this website still had a THANKS button instead of a LIKE button. I want to THANK you for explaining this, but I don't LIKE the fact that it is true.

    Ken