Electric vehicle batteries will cost less than $100-per-kWh to make by 2020; and less than $50-per-kWh by 2025, significantly reducing manufacturing costs for EVs, according to a Chinese supplier of EV batteries.
The $100-per-kWh threshold has been heralded in the industry as the price at which an EV could be made cheaper to produce than a gasoline-powered car.
If Chinese battery manufacturer Envision Energy does indeed cross that threshold, it will hopefully mean consumers will see the mark-ups on EVs disappear; and automakers will see profits grow on battery-driven vehicles.
Lithium-ion cells for electric vehicles currently cost about $145-per-kWh, and turning them into battery packs drives that up to $190-per-kWh.
Arun Majumdar of Stanford opened the university’s Global Energy Forum, reports Forbes, by explaining he saw EV market penetration deepening after the $100-per-kWh threshold was reached in five to seven years.
Envision Energy CEO Lei Zhang, a panelist at the forum, responded by predicting his company’s batteries would see that number in two years.
Cheaper batteries will likely show up before car manufacturers can sell the vehicles built around them, however, as it normally takes up to five years for new vehicle designs to hit the market. Envision’s claims electric cars will become widely adopted “overnight” may not be so plausible.
Envision owns the AESC battery business formerly managed by Nissan, and is currently working on batteries for wind turbines and energy management systems. Nissan now sources batteries from LG Chem.
Note from WSOE.Org : This content has been auto-generated from a syndicated feed.