Cost of Lithium batteries is the key to the wide adoption of Electric Cars. Mass volume production and technological advance will help, like in case with Envia systems. Another solution will be the industry wide adoption of leasing the lithium batteries - like Renault does in Europe, when the entry cost of ownership of the Electric Car is dramatically lower and any troubles with batteries are excluded from the drivers' concerns.
Lithium Batteries: Envia Systems - 400 Wh/kg is here! - Electric Cars with 300 Miles Range.
"If we can marry Tesla's abilities and ambitions with new Lithium batteries for Electric Cars from Envia Systems we can have the US based mass market production base for the Electric Cars."Lithium Drive: Electric Cars are on the rise, at least in 16 Leading Cities
"Amid doom and gloom the new industrial rEVolution is taking place now. Tesla Model S represents the dramatic change and is breaking the spell about electric cars. Only a few models of electric cars are available today and prices are still very high, but already more and more of different EVs are on the streets. Catalyst will come with Lithium batteries providing the better range and when you can actually lease the battery - like in case with Renault in Europe. It will reduce the entry point for electric cars and will keep all worries about the lithium batteries covered by the auto maker."
Chicago Tribune:Report sees cost for EV batteries dropping 70% by 2025
The 23-kilowatt-hour battery used in Focus Electric, Ford's first electric passenger car, can cost $12,000 to $15,000, which suggests Ford paid as much as $652 per kilowatt hour. (Ford Motor Co. /July 11, 2012)
11:28 a.m. CDT, July 11, 2012
The cost of lithium-ion batteries used in electrified vehicles could tumble by more than 70 percent by 2025 as oil prices and stringent fuel economy standards push automakers to build more of these cars, according to a McKinsey & Co. study released Wednesday.
Manufacturing these batteries on a larger scale represents one-third of the potential price reduction by 2025, McKinsey said. The expected influx of companies in the sector and technology borrowed from consumer electronics makers such as Apple Inc. would also help cut lithium-ion battery costs, the consultancy added.
"Cheaper batteries could enable the broader adoption of electrified vehicles, potentially disrupting the transportation, power and petroleum sectors," McKinsey wrote.
McKinsey predicts the price of a complete lithium-ion battery pack could fall from $500-$600 per kilowatt hour now to about $200 in 2020 and to $160 by 2025.
If gasoline prices hover around $3.50 per gallon or higher, electrified vehicles could then compete with cars and trucks powered by advanced internal-combustion engines, which are now significantly cheaper.
Battery costs represent one of the main hurdles to the widespread adoption of low-emission vehicles, analysts say. The U.S. Department of Energy has set a goal to reduce the cost of a battery pack to $300 per kilowatt hour by 2014.
The 23-kilowatt-hour battery used in Focus Electric, Ford's first electric passenger car, can cost $12,000 to $15,000, Chief Executive Alan Mulally said at a conference in April. That suggests Ford paid as much as $652 per kilowatt hour.
Higher volumes are the biggest factor in reducing battery prices, McKinsey consultants said. Prices could also drop if battery makers refine their manufacturing process and use standardized equipment, they said.
"Regulation around the world, not just in one region, is getting increasingly stringent," McKinsey consultant Russell Hensley said in an interview.
Hensley, who helped write the study, said the new standards expected to be in effect by the mid-2020s are too strict for the internal combustion engine.
"If you want to play in the automotive markets around the world, you actually need vehicles that are emitting less carbon," Hensley said.
Battery costs will also fall as the consumer electronics industry keeps making rapid breakthroughs on the life and power of lithium-ion batteries, according to the study.
Those improvements will work their way into vehicles, said McKinsey consultant John Newman, who is also an author of the report. Batteries in the consumer electronics sector are available today for about $300 per kilowatt hour.
"It's the consumer electronics industry as much as any other industry that's driving the costs lower," Newman said."