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Power The Almighty Buck

Battery Prices Have Fallen 88 Percent Over the Last Decade (arstechnica.com) 159

An anonymous reader quotes a report from Ars Technica: The average cost of a lithium-ion battery pack fell to $137 per kWh in 2020, according to a new industry survey from BloombergNEF. That's an inflation-adjusted decline of 13 percent since 2019. The latest figures continue the astonishing progress in battery technology over the last decade, with pack prices declining 88 percent since 2010. Large, affordable batteries will be essential to weaning the global economy off fossil fuels. Lithium-ion batteries are the key enabling technology for electric vehicles. They're also needed to smooth out the intermittent power generated by windmills and solar panels.

But until recently, batteries were simply too expensive for these applications to make financial sense without mandates and subsidies. Now, that is becoming less and less true. BloombergNEF estimates that battery-pack prices will fall to $100 per kWh by 2024. Specifically, BloombergNEF projects that battery pack prices will fall to $58 per kWh in 2030 and to $44 per kWh in 2035. That's roughly the level necessary for BEVs to be price-competitive with conventional cars without subsidies. Given that electric vehicles are cheap to charge and will likely require less maintenance than a conventional car, they will be an increasingly compelling option over the next decade.

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Battery Prices Have Fallen 88 Percent Over the Last Decade

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  • by phantomfive ( 622387 ) on Friday December 18, 2020 @10:38PM (#60847222) Journal

    The cheaper they get, the more attractive electric cars become. When they get cheap enough, E will be more attractive than ICE in every way.

    • But when EVs take over more and more market, the demand for gasoline will start to drop and so will the price.

      I remember riding with my granddad and he drove several blocks to pay $0.22 a gallon instead of $0.24. We might see those prices again in today's dollars.

      • But later, this price will make gas stations and refineries decide it's no longer worth selling. They may choose to make more valuable hydrocarbons instead.
        • by ceoyoyo ( 59147 )

          Not later. If enough people start driving EVs that the price of gasoline drops, the gas stations will start closing too. As that happens more people will switch to electric because it's a hassle to find a place to fill a gas car.

          Also, the price of gasoline is really set by the Saudis and Russians. Who knows what they'll do?

      • But when EVs take over more and more market, the demand for gasoline will start to drop and so will the price.

        The obvious solution is higher gasoline taxes. Once the majority is driving EVs, getting support for taxing the minority should be easy.

    • by Jodka ( 520060 )

      The cheaper they get, the more attractive electric cars become. When they get cheap enough, E will be more attractive than ICE in every way.

      Yes, the idea underlying the old Google RE<C Initiative [google.org] (2007) was that you don't need regulations, government prohibitions or subsidies to transition from coal to renewables. All you need is to make renewables cheaper than coal and then people will switch voluntarily. Kind of like the way most of us don't ride horses or use vacuum tube hi-fi systems today, because those things are more expensive forms of amplification and transportation than are modern alternatives. There is no government agency now

  • AA's and such seem just as expensive as ever.

  • I think I read that someone is trying to bring back Radio Shack, give them time.

  • by 140Mandak262Jamuna ( 970587 ) on Friday December 18, 2020 @11:43PM (#60847360) Journal
    It is generally accepted the break even price for a BEV to achieve price parity with ICEV is 100 $/kWh. May be its is too optimistic and may be ICEV makers will try to reduce cost/profit/quality to fight back. So it might be as low as 90 $/kWh (at pack level not cell level).

    The confusingly worded summary suggests it might be 58 $ or 44 $ to achieve price parity. That is not the case.

    • I can buy a brand new crate engine for $5000 and a transmission for $3000. That means I would need to be able to buy the major components of an electric drive train (battery and motor) for $8000 to be price competitive. Tesla motors go for around $2500 (second hand), so a 100kWh battery pack for $5000 sounds about right to be the break even point - aka $50 per kWh.

      • Depends on what range you are looking for. Packs on mid-range EVs are around 65kWh. That's $76 / kWh by your calculation.
      • You aren't considering the lower cost of electricity vs gasoline.

        If you are financing your car, your savings on powering your EV can make up for a somewhat higher monthly payment.

        • Lower cost of ownership is already there for the upper end of C segment and above.

          Price parity is not going to come all of a sudden to all segments. In the super expensive F segment, BEVs are already cheaper than ICEV, but usually these are marked up way beyond cost of manufacturing and have lots of hype and emotion attached to them. Ferrari is a ferrari. Even you show a Model X towing an Alfa Romeo accelerating faster then that Alfa Romeo itself, it is not going to change anyone's mind.

          In E segment Tesl

      • Dont compare retail prices of OEM, they have very heavy margins and markups. The engine, transmission, fuel tank, and emission control is estimated to cost around 6000$ based on gross margins and other estimates for a C segment car retailing between 24K and 36K. A 60 kWh battery at 5400$, motor + charging and controls for 600$ give you a break even point. Tesla electric motor is very cheap. Sandy Munro estimated it to be under 500$.

        Dual motor BEVs are not all that more expensive. But they will just make t

    • But in 10-15 years ICE car will be banned in europe and the rest of the world will probably follow, even the USA, though I suspect they'll be the last to do it.

    • May be its is too optimistic and may be ICEV makers will try to reduce cost/profit/quality to fight back.

      Most of the ICE makers are starting to make EVs.

    • by AmiMoJo ( 196126 )

      These days a lot of sales are on lease, so the maths are a bit different. A lot of people look at the monthly cost rather than the retail price of the car, and BEV is already very competitive with ICE, especially when you factor in fuel savings.

    • by Socguy ( 933973 )
      As BEV sales increase, the volume of ICE vehicles produced will drop and they will gradually lose economies of scale driving up their price. Additionally many BEVs are already cheaper to own than ICE vehicles when lined up against ICE models in the same class. As we speak the 'cheap' ICE cars are rapidly disappearing anyway with an increasing number OEMs simply discontinuing them (as they're almost loss-leaders to attract a new generation into the brand) and consumers turning their backs on the ones that
  • by gurps_npc ( 621217 ) on Saturday December 19, 2020 @12:54AM (#60847476) Homepage

    In particular, over the last 5 years they have developed flashlights that can fit in your dress shirt pocket that can act as an emergency phone charger. Bring it from dead upto 60%.

    20st century was redefined by the computer chip - we went from radio to the internet. 21st may be energy storage.

    • That's probably because most of those flashlights have a 18650 cell or similar in them, which is actually a pretty hefty battery, comparable in volume to some cell phones in their entirety. So you just need a DC-DC transformer and a bit of regulation equipment to turn that into a 5V line for the USB(will be getting more complicated with the newest standards allowing higher voltages). The equipment tends to be tiny and thus not particularly efficient, which is why it doesn't provide a full charge.

      As such,

  • by Somervillain ( 4719341 ) on Saturday December 19, 2020 @01:07AM (#60847498)
    There's a lot of emphasis on cost, but there are many other reasons to go EV. For starters, few drive 300 miles before going home. most of us drive 10-60 miles most days. Therefore, you never have to pay for gas again nor worry about refueling. Even if it costs you more, my time is valuable. When I was commuting 60 miles a day, I would have been very happy to never stop at a gas station again and just charge up at home or work.

    Secondly, less pollution is nice. There's a lot of toxic carcinogens spewing out from your tailpipe. Many people of means wouldn't mind paying a little more if it means they'recontributing to improving the air quality.

    Finally, I think EVs have a bright future in new form factors. For example, a VW minibus...terrible fuel economy with ICE, but for EV, who cares? I want one. I think there will be many creative designs in the near future that take advantage of the fact you don't need a giant ICE engine in front and save on space. I can imagine many people buying into EVs for new and creative form factors that are impossible or impractical with an ICE engine.
    • For example, a VW minibus...terrible fuel economy with ICE, but for EV, who cares? I want one.

      Bad aerodynamics will ruin your range.

      • For example, a VW minibus...terrible fuel economy with ICE, but for EV, who cares? I want one.

        Bad aerodynamics will ruin your range.

        That's the point. When everyone is vaccinated, I want to take a bunch of family and friends 20 miles to the beach. I don't care if the range is 100 miles. I think many of means with extra parking slots in their driveway would feel the same way. You feel bad for guzzling a ton of gas, so you buy a minivan or SUV that tries to do everything. With EVs, I could see people of means with an extra parking space buying a vehicle that sits idle for most of the week and then does one task really well, but is ine

    • few drive 300 miles before going home.

      Few do it every day, but a lot of people do it from time to time. Holidays, visiting relatives, outdoor/wilderness activites and so-on.

      Which brings up the electric car conundrum, do you buy a battery that will cover all your journeys, and have an expensive battery sit idle most of the time? or do you have a small battery and try to find some other soloution for the occasional long trips?

      I'd expect PHEVs to become a common choice in the coming years, get a battery with a big enough range to cover your daily

      • by jon3k ( 691256 )

        Which brings up the electric car conundrum, do you buy a battery that will cover all your journeys, and have an expensive battery sit idle most of the time? or do you have a small battery and try to find some other soloution for the occasional long trips?

        Option 2 mostly, sometimes 1, depends on the trip length and route. Most people are in families with more than one car, we have one EV and one ICE. If you want to use ICE for a long trip you can. Otherwise you rent a car. We typically rent when we take one of our few, pre-planned (3-4) road trips a year. We like to keep the miles off our cars. I did this even when I had my last gas car (Audi RS5). Other than that I drive, pre-pandemic, maybe 50 miles a week. I usually charge every 1-2 weeks, at nigh

  • by rbrander ( 73222 ) on Saturday December 19, 2020 @01:38AM (#60847562) Homepage

    David Roberts at Vox ran the numbers: https://www.vox.com/energy-and... [vox.com]

    To get to industry standards for 7x24 reliability, wind TURBINES (not "windmills", TFA, sheesh) and solar...need storage to go all the way down to $20/kWh, that is, to keep electricity prices anywhere near their levels now.

    However, Roberts stresses that you can have a close approach to 100% covered with anything below $100 - and we're nearly there, which is I guess why so many gigawatt-hours of plants are being put in already.

    Myself, I think that you need to see most households having EVs and charging...and the mandated design should allow the EV to power the house when the mains brownout, and even feed power back to the neighbourhood. Presto, almost free storage, because the storage has been purchased for another reason.

    • Does he take into account cost minimization like Zerrahn, Schill, and Kemfert do, or is this one of those fictional "we need to store 100% of overgeneration no matter the cost" scenarios that we hear about from people like Hans-Werner Sinn?
      • Does he take into account cost minimization like Zerrahn, Schill, and Kemfert do, or is this one of those fictional "we need to store 100% of overgeneration no matter the cost" scenarios that we hear about from people like Hans-Werner Sinn?

        I *think* I know what you mean by "cost minimization", but I'm not completely certain. Would you mind expanding a bit?

      • by rbrander ( 73222 )

        I should properly have credited the work to MIT, Vox was just reporting on their paper.

        It wasn't about storing overgeneration, but matching the reliability we have on 7x24 sources, now, like coal and gas.

    • Myself, I think that you need to see most households having EVs and charging...and the mandated design should allow the EV to power the house when the mains brownout, and even feed power back to the neighbourhood.

      I don't know about feeding power back, for one thing that requires an expensive grid-tie inverter. But absolutely you should be able to power your house from your vehicle battery for a period of time. OTOH... as time goes on we're going to have a lot of old vehicle battery packs whose storage capacity is reduced enough that it doesn't make sense to use them in vehicles any more. Recycling those batteries as home storage or grid-scale storage could pretty quickly provide an enormous buffer for dips in renewa

      • by ceoyoyo ( 59147 )

        You could also just disconnect from the grid when it gets squirrely and power your house off the car for a bit. Lots of people who have generators already have that capability, not to mention boats and RVs.

        • You could also just disconnect from the grid when it gets squirrely and power your house off the car for a bit. Lots of people who have generators already have that capability, not to mention boats and RVs.

          Sure. That's what I was suggesting. Even if you want to automate it, you need only a transfer switch, not a grid-tie inverter. Much cheaper.

  • Sandy Munroe has in multiple videos stated he is "very confident" that Tesla can manufacture a battery at $43 per kWh, today, in 2020. So the future is already here but it will take some time for that effect to trickle down to other brands.

    • by Luckyo ( 1726890 )

      The actual problem is that we (non-pop culture environmentalists) understand that li-ion is a transitional tech. Its theoretical maximums are insufficient for large scale deployment. We're already seeing it plateauing in capacity and cost (look at the chart, there's a reason they started from 10 years ago and not 3).

      There's still significant hope in moving to 8:1:1, but after that, we're getting pretty close to having squeezed out low and mid hanging fruit, and most of the high hanging fruit. Which is why w

    • Read it carefully. The statement was made in 2020, not the price.

      Tesla itself is projecting 60 $/kWh or so but that includes structural battery, cells directly glued to car body, and other such innovations.

  • Electric vehicles are not always cheap to charge.

    In some countries like Denmark, Germany, and Belgium the cost (per kWh) of electrical energy is such that the cost of powering your electric car (e.g. Tesla) is similar to that of powering a (modern, efficient) ICE car when you compare the energy cost of driving the same distance.

    That doesn't mean electric cars are not a good idea. It only means they are not much cheaper to operate.

    • by JaredOfEuropa ( 526365 ) on Saturday December 19, 2020 @05:52AM (#60847908) Journal

      In some countries like Denmark, Germany, and Belgium the cost (per kWh) of electrical energy is such that the cost of powering your electric car (e.g. Tesla) is similar to that of powering a (modern, efficient) ICE car when you compare the energy cost of driving the same distance.

      I live in a country like that, but it's not even close. You forget that we already have an extremely stiff tax on petrol; we pay €1,55/l (around $7.10/gallon)

      How much to drive 100km? Comparing a Hyundai Kona EV against a Kona ICE; other than the drive train, the cars are the same
      - ICE: using 6l/100km, costing €9,30
      - EV: using 16kWh/100km, costing €3,04(I pay €0,19/kWh)
      EVs are significantly cheaper to fill up, and a lot cheaper to maintain too.

    • That is the price of electricity, not the cost.

      In Germany, residential customers pay 0.30 euros/kwh. But much of that is taxes and fees.

      Industrial customers can buy wholesale power at about 0.05 euros/kwh. That is much closer to the real cost.

      If Germany wants to promote EVs, they can give a tax break to EV owners.

      Many other jurisdictions already do that. I live in California, and I get special nighttime rates because I have an EV.

    • Even within a country the price of electricty for EV usage can vary hugely.

      For example here in the UK if you charge at home, overnight, on a specialist EV tarriff you can get prices as low as 5p/kWh. Some public chargers are apparently has high as 40p/kWh.

  • by Oddhack ( 18073 ) on Saturday December 19, 2020 @07:20AM (#60848048) Homepage

    In the SF Bay Area - a place with one of the greatest densities of EVs in the country - it is definitely not a given that they're cheap to charge. PG&Es tiered residential rate, into which most people will fall, is around $0.28/kWh - roughly the same cost/mile as a gas car with decent mileage. While it's possible to take advantage of their EV rate, it's not going to be a significant win for most people unless they drive well above average mileage/day, since it shoves daytime rates sky-high. Also, charging a pure BEV solely at night effectively requires installing a Level 2 charger and associated infrastructure, which can run into thousands of dollars depending on the circumstances.

    Commercial charging is even more expensive. DC Fast Charge runs around $0.42/kWh, when you can find it. Not sure about Tesla Superchargers.

    I own a PHEV and am considering a Bolt, but not because the cost/mile is low. It isn't, and won't be under PG&E's tender mercies.

  • Maybe the cost to manufacture has gone down but the complexity of using lithium batteries hasn't. You can buy an SLA battery for less than a third the price of a lithium battery that has the same capacity and you don't need special (read: expensive) battery management circuitry to keep the thing healthy.

Did you know that if you took all the economists in the world and lined them up end to end, they'd still point in the wrong direction?

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