On September 18, 2013, executives of two first-line car battery companies said this week that the cost of lithium batteries used in electric and hybrid vehicles is steadily declining, and the price in 2020 may reach half of the current level.
However, one of the executives said that due to the lack of uniform standards among major hybrid car manufacturers, the cost of monitoring the battery's electronic systems may remain high.
“Our internal goal is to reduce prices by at least half by 2020. We are very confident about this,†said Prabhakar Patil, CEO of LG Chemical Energy. LG Chemical Energy is a subsidiary of LG Chem, a leading manufacturer of lithium batteries for the world.
Brian Kesseler, president of Johnson Controls' Power Solutions division, said that the cost of battery cells will indeed be reduced by half, but because the standards among different vendors are not uniform, the entire control system is included. The battery composition is unlikely to decrease.
"The real problem is the cost of the entire system," he said. Since each car manufacturer uses a customized system to drive electric vehicles, the overall cost of electric vehicles is unlikely to be significantly reduced.
Both of them made the above comments at The Battery Show industry conference in Michigan, USA.
Battery cost has always been the biggest challenge facing the electric vehicle industry. As Tesla and General Motors both stated that they plan to drive a 200-mile (about 322-kilometer) electric car at a single charge of 35,000 and 30,000 U.S. dollars respectively, making this challenge even more prominent. To achieve this goal, both companies must significantly reduce the cost of the battery pack.
Automobile manufacturers and battery makers will not disclose specific battery costs, but the Argonne National Laboratory estimates that the average cost per kilowatt-hour of storage is about $500. Since the Nissan Leaf has a 24 kilowatt-hour battery pack, it costs about $12,000.
Nissan refused to disclose the specific costs, but the starting price of the Leaf was US$28,800. It adopted the same basic design as the Versa hatchback, which started at US$13.99 million.
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