Cost of electric vehicles is dropping quickly due to advances in battery technologyJuly 20, 2015
Battery technology is becoming more cost effective
Electric vehicles are becoming more affordable at a rapid rate, and advances in technology may be the reason. In recent years, lithium-ion batteries have been dropping in price, largely due to companies, like Tesla, making significant advances in battery technology. Batteries are becoming more efficient and less expensive, which is likely to have an impact on the price of electric vehicles in the coming years. As these vehicles become less expensive, they are expected to become more attractive to consumers interested in clean transportation.
Energy storage systems show the falling price of lithium-ion batteries
Recently, Tesla revealed its Powerwall energy storage system, which highlights the dropping cost of battery technology. In 2014, the installation of lithium-ion storage systems in a typical home in California was more than $23,000, according to a report from The Wall Street Journal. Tesla CEO Elon Musk noted, however, that the Powerwall storage system would cost approximately $3,500, including a $500 installation fee. This is significantly lower than the cost of other battery systems.
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Report highlights the falling cost of battery technology
A recent report from the Stockholm Environment Institute published in Nature Climate Change suggests that lithium-ion batteries are becoming significantly less expensive, especially when they are being used in electric vehicles. The report shows that battery packs for these vehicles have fallen in price from 2007 to 2014. Researchers noted that battery technology is falling in price so rapidly, that by 2014 the cost of batteries had already fallen below their projected price in 2020. The cost of batteries is predicted to continue falling at a rapid rate, and this may make electric vehicles very popular among consumers in the coming years.
New manufacturing practices help make batteries more attractive for electric vehicles
Better manufacturing methods have contributed to the fall in price of battery technology. Tesla has played a major role in this through the development of its “gigafactory,” a facility that is committed to producing cost effective batteries that are both high performance and efficient solutions. As Tesla is a major force in the clean transportation space, the advances it has made in battery technology may become a major benefit for electric vehicles.