22 Years' Battery Customization
Feb 25, 2020 Pageview：1170
There is no denial in the fact that the experts of the automobile industry and other economic sectors are stimulating the need for electrically driven vehicles. That being the case the manufacturers of the automobile sector firmly believes that, the future of the passenger vehicles will run on power, i.e., on electricity. Now, whether there will be fully electrified vehicles on roads or partially electrified, time and speed of innovation will give answers to it.
Henceforth, one thing is clear that it largely depends upon the current and future cost of lithium ion batteries, which are also known as Li ion batteries. This is because lithium ion batteries are serves as an essential or primary component of electric vehicles such as cars, bikes, buses, trucks, etc. The following listed information will enlighten you about the cost structure and price trends of lithium ion batteries. Read further to explore more.
How much does Li ion battery cost?
Well, to begin with, the cost of lithium ion batteries it is crucial for you to know that why these batteries have built a commendable lead amongst other batteries in the eyes of global manufacturers of the automobile industry. Lithium ion battery, which is also denoted by secondary cell battery, is basically rechargeable in nature. The lithium ions move from the direction of the negative electrode to the ends of positive electrodes in case of discharge and return back when charged.
Despite the rechargeable nature of these batteries, they provide high levels of energy density and voltage as well. It will be appropriate here to pinpoint the fact that lithium ion batteries are crucial for the transition of society for using renewable energy sources. The extraordinary efficiency and performance of these batteries have spurred its need in almost all the sectors.
Well, there stands no doubt in the fact that chemistry of lithium ion batteries is giving cutting edge competition to all the other existing battery technology due to the above-listed reasons. Experts, globally acclaim that the industry of these batteries will remain undisruptive for more than 30 years from now.
According to the study and statistics of Bloomberg New Energy Finance, the global average cost of lithium ion batteries in the year 2018 amounted to $175 per kWh, which is far less than the rates of 2010 where it went up to $1200 per kWh.
Are Li ion batteries getting cheaper?
According to anonymous research, it is believed that the cost of lithium ion batteries will be most likely to fall by 2020-2021. This will consequently lead to the adoption of electricity driven vehicles and gadgets all across the world. If reports are to be believed, then there are high chances of lithium ion batteries going cheap in the future.
Over the last ten years, the cost of lithium ion batteries has plummeted, which has resulted in increased demand for these batteries. The manufacturers have stuck to these batteries because they offer high energy storage levels. There can be many significant reasons behind the cheap cost of lithium ion batteries, such as the production capability.
The cost involved in the process of acquiring the raw material, process of mining and refining, and the process of packaging all have reduced and refined so that the beneficiaries can stay motivated to use these batteries. Well, there is no doubt in the fact that the current price phase of lithium ion batteries is quite low due to many benefits. Some of which may include zero maintenance or high quality.
Well, according to the reports and statistics, it is said that the current prices are cheap, but they are expected to go less expensive in the future because, with each passing year, more and more people are getting aware about the advantages of lithium ion batteries.
What is the price trend and cost structure of the Li ion battery?
One of the significant differences why manufacturers prefer a lithium ion battery over lithium batteries in electric vehicles is that they are rechargeable batteries and ultimately offers more utility and much advance performance. Due to ongoing advancements and technology updates, the average prices are falling at a much faster rate than the expectation. Therefore it is a bit tricky to forecast the future costs of lithium ion batteries.
The following listed below are the combined study that shows the cost structure and the price trends of the Li ion battery:
The cost of lithium ion battery for a mobile device ranges somewhere around $2 to $4, and it varies on the capacity and design attributes of the device. The price of the battery costs up to 2% of the entire cost of the mobile.
The price of a lithium battery that is used in an electric vehicle ranges from $7000 to $20000; therefore it is one of the most expensive components of the electric vehicles.
As mentioned earlier, the cost of Li-on battery has reduced around 80% to 85% in the last ten years. Now, the average estimate of a battery comes around $176 per kWh.
The rate of reduction in prices can amount to 50% by the end of 2030.
On the basis of some observation, the rate of reduction can go up to 75% by the end of 2040.
According to recent studies, it is observed that the average price of these batteries can fall up to $60 per kWh.
It is believed that the prices will continue to reduce much faster than the predicted prices, basically due to technological advancements and other underlying factors.
The reduced rates of lithium ion batteries are enough to widespread electrification in almost every industry.
Some Final Words
The points of price trends that are mentioned above are enough to highlight the fact that soon we will witness only electric-powered vehicles on the road. This will be a great step in saving the environment from degradation and high levels of pollution.
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