Electric-vehicle batteries\' cost may drop 70 pct by 2025-study

by:CTECHi     2020-04-02
Reuters July 11-
Cost of lithium-
With rising oil prices and strict fuel economy standards driving automakers to produce more electric vehicles, ion batteries used in electric vehicles could drop by more than 70% by 2025, according to a research report released by McKinsey on Wednesday.
Making these batteries on a large scale represents-
McKinsey says there is a third reason for the potential price cut by 2025.
It is expected that the influx of companies in the industry and new technologies borrowed from consumer electronics manufacturers such as Apple will also help cut lithium-
The cost of ion batteries, the consultancy added.
\"Cheaper batteries can make electric vehicles more widely used, which can damage the transportation, electricity and oil sectors,\" McKinsey wrote . \".
McKinsey predicts the price of a complete lithium
The ion battery pack may drop from $500 to $600 per kilowatt hour now to about $200 in 2020 to $160 in 2025.
If the price of gasoline hovers around $3
$50 per gallon or higher, car manufacturers that buy batteries for $250 per kilowatt hour can offer electrified vehicles to compete with advanced in-house-driven cars and trucks
A cheaper internal combustion engine now.
Battery cost is one of the main obstacles to widespread adoption of low-cost batteries
Emissions of cars, analysts say. The U. S.
The Department of Energy has set a goal to reduce the cost of battery packs to $300 per kWh by 2014. The 23-kilowatt-
Ford Motor Co. \'s first Electric passenger car, Focus Electric, uses an hourly battery that could cost between $12,000 and $15,000, with chief executive Alan Mulally in April.
This shows that Ford pays up to $652 per kilowatt hour.
McKinsey Consulting said the increase in sales was the biggest factor in the decline in battery prices.
If the battery manufacturer improves the manufacturing process and uses standardized equipment, prices may also fall, they say.
In an interview, McKinsey consultant Russell Hensley said: \"regulation around the world, not just in one region, is becoming more and more strict . \".
Hensley, who helped write the study, said the new standard is expected to take effect in the medium term.
For the internal combustion engine, the 2020 s is too strict to meet.
\"If you want to play in car markets around the world, you actually need to emit cars that are less carbon,\" Hensley said . \".
As the consumer electronics industry, led by companies such as Apple, continues to make rapid breakthroughs in expanding the life and power of lithium, battery costs will also decline
According to this study, ion batteries.
John Newman, McKinsey consultant, said the improvements will enter the automotive space over time, and he is also the author of the report.
Today, battery prices in consumer electronics are around $300 per kilowatt hour.
\"Like other industries, the consumer electronics industry is also reducing costs,\" Newman said . \".
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