LONDON: The price of battery cells employed for electric vehicles has fallen to an average of $a hundred and ten per kilowatt hour (kWh), earning these types of cars aggressive with people making use of interior combustion engines (ICE), according to Benchmark Mineral Intelligence (BMI).
1 barrier to a bigger choose up of electric vehicles has been the higher price of manufacturing the lithium-ion rechargeable batteries, which according to BMI averaged $one hundred twenty per kWh previous year and $280 per kWh in 2014.
“The holy grail to make electric vehicles cheaper than ICE vehicles is considered to be battery cells costing $one hundred kWh,” reported BMI Running Director Simon Moores.
“The truth is at $a hundred and ten a kWh for massive automotive contracts we have presently reached the tipping issue.”
BMI estimates that involving 2014 and 2017 the value of battery cells fell 16.five% per annum, but involving 2017 and 2020 the drop was only five.eight% per annum.
“We may perhaps have viewed the previous of the large effortless wins for lithium-ion battery producers in decreasing price,” Moores reported.
“It is now about decreasing and stabilising the price of your biggest enter uncooked supplies these types of as lithium, nickel, graphite, cobalt and manganese.”