JAN 13

At a speech this week in Detroit, Energy Secretary Dr. Steven Chu made some very hopeful predictions about the electric car industry, namely that the cost of electric car batteries would drop by 70 percent by 2015 compared to 2008 prices.

Secretary Chu said that we were on track to see the cost of a battery for a plug-in hybrid EV with a 40-mile range drop to $3,600 by 2015 compared to $12,000 in 2008.  By 2020, he said we would see that cost drop to $1,500, an 87.5 percent drop from 2008 prices.

What industry experts have been saying all along seems to be finally coming true.  As manufacturing has ramped up and technology has advanced, the cost of EV batteries, the most expensive part of the vehicles, has dropped.  Soon enough we'll hit a major turning point where EVs are less expensive to buy and own than conventional cars.

Secretary Chu also sees breakthroughs coming in batteries other than the current standard lithium-ion such as lithium-air, lithium-sulfur and different metal-air versions.  The DOE is opening a new research lab later this year called the Energy Innovation Hub which will bring together scientists, engineers and experts on the business side of things to develop more advanced, quicker charging and longer lasting batteries that cost less.  The lab will focus on developments that would bring about large leaps in performance that could be prototyped this decade, not on small incremental improvements.

via DOE

Comments (8)

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written by Dage, January 14, 2012

If batteries are the most expensive part of an electric vehicle why do cars like the Leaf sell for much less than the Volt which has a much smaller battery than a pure EV.

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My guess
written by Fencerdave, January 15, 2012

Most likely the Volt costs less to produce per car, but I wouldn't be terribly surprised if the engineering cost for the plug-in-hybrid makes for a larger overall cost to the company that they are having to offset.

Just a guess.

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Another guess
written by Guest, January 16, 2012

The Volt also has a gasoline engine and all the associated systems as backup to allow unlimited continuous range (when you buy gasoline). Also, GM vowed it would sell the Volt only at a price that it wouldn't lose money, unlike when Toyota first offered the Gen1 Prius. I don't know if Nissan makes money on the Leaf, yet.

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written by Dage, January 20, 2012

Aren't the gasoline backup systems pretty minimal consisting of a very small generator type motor which never actually powers the wheels but simply keeps the battery charged for those fairly rare occasions when one needs to take an extended trip. It doesn't seem like that small engine should cost anywhere near as much as the extra batteries needed for an all electric vehicle. But as stated for now the R&D required may add to the cost hopefully only for the near future. I hope these vehicle costs aren't being artificially inflated to keep us dependant on oil. I think that if they were safe and at a normal price point everyone would want one.

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Volt
written by Bob Drake, January 21, 2012

I drove a Leaf at a Nissan event here in ATL last Saturday, and a Volt at a regular Chevy dealer at lunch today. Completely different cars! (Other than the smooooth turbine like acceleration) The Chevy has a full size 1.4l 4 cyl engine upfront, so when you need power and the battery has run out, it supplies it to the battery! No plug in worries. It is a more normal car, the leaf looks like a bulbous kids toy. Of course quite a bit more expensive! It seems lower tech, no temp control for the battery, much lower capacity, feels like Nissan rushed it to market. The Volt feels much more substantial. Although a much bigger car, it isn't terribly space efficient inside. I'm only 5'6" and I hit my head getting into the back seat! I guess the price you pay for the aerodynamic styling. Still it is a car I could live with, the Leaf seems and looks like an economy car. Real coolness abounds on the dashboard of the Volt. Most all the buttons are like a touch screen, no moving parts except the twisting knobs for volume etc., as you would want. Only thing I'm not crazy about is the digital speedo, too much hassle to read, an analog dial is much easier to read. Maybe you can change the display, I didn't ask. There are LOTS of user definable items on the main display, very cool.

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Dr. Chu
written by JP, January 21, 2012

This is exciting. When the bureaucrat making an announcement happens to be the ex-boss at Berkley National Lab, a PhD in Physics, and a Nobel Laureate in Physics; you know the man has a bigger scientific reputation to defend than a short political career. This is not speculation; this guy knows what he talking about.

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Congrats Sec. Chu
written by Joy Hughes, February 02, 2012

I want to give a huge thank you to Secretary Chu for supporting battery research and making real the future of distributed energy storage!

Joy Hughes
Founder
Solar Gardens Institute

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computer recycling
written by computer recycling, February 07, 2012

Great news on the pricing, but what still needs to be addressed is the weight issue of the batteries (still a major constraint in electric vehicle design).

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