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Study predicts dramatic decline in lithium ion battery costs

18/07/2012


The price of automotive lithium ion batteries is expected to fall dramatically by the end of the decade and even further by 2025, according to a McKinsey study released July 11.
In a “should cost” model that researchers developed, the consulting firm says the price for a “complete automotive lithium ion battery pack” could drop from $500 to $600 per kilowatt hour today to about $200 by 2020 and $160 by 2025. A kilowatt hour is a measure of energy storage.
How would lower prices affect the price of the Chevrolet Volt’s 16 kilowatt hour battery pack? Assuming a current cost of $500 per kilowatt hour, the Volt battery today costs $8,000.
At $160 per kilowatt hour, the same battery would cost $2,560 in 2025, assuming no inflation.

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