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Study predicts dramatic decline in lithium ion battery costs


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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