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EV Battery Report Says Costs Going Down

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Bob Wallace
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Re: Political hot button
Bob Wallace   4/3/2012 4:31:10 PM
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Fred Smith, CEO of FedEX said this about where he sees the local delivery industry going...

"I think in three or four years you will have a battery vehicle with a range that's probably double what it has today — a couple of hundred miles versus a hundred miles — and it'll probably be 25 percent to 40 percent cheaper than [it] currently is."

 

"An all-electric pickup and delivery van will operate at a 75 percent less per-mile cost than an internal combustion engine variant," he says. "Now, I didn't say 7 1/2 percent — [I said] 75 percent. These are big numbers.

 

Smith says he believes that six years from now, electric vehicles will be in wide commercial use, transporting everything from FedEx packages to plumbers and pizza.

 

http://www.npr.org/2012/04/02/149703488/oil-scare-turns-fedex-onto-energy-efficiency

 

As for where battery prices are now, let me offer this...

Better Place, the company currently building car-charging and battery-swapping networks in Israel and Denmark, is purchasing batteries for cars at $400 per kilowatt hour for delivery in early 2012, according to company executives.

 

http://www.greentechmedia.com/articles/read/ev-batteries-dropping-rapidly-in-price/

 

 

Rob Spiegel
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Re: Political hot button
Rob Spiegel   4/3/2012 4:14:10 PM
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I wonder how production in China will affect battery prices in coming years. China has certainly worked to bring down the coast of solar panels in recent years. I understand they are also targeting EV batteries as a market they want to grab.

Beth Stackpole
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Re: Political hot button
Beth Stackpole   4/3/2012 1:13:51 PM
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@TJ. Now that's a sweet idea and one that should be doable. I'm wondering if any one out there knows of some sort of similar report?

TJ McDermott
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Re: Political hot button
TJ McDermott   4/3/2012 10:23:11 AM
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Beth, you're right; I'd prefer to see such a report from the CBO instead of the President's administration.  Such a report will never escape the bias from its source.  Better yet, have an organization the likes of Consumer Reports generate the report.

naperlou
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Re: Political hot button
naperlou   4/3/2012 9:12:40 AM
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Beth, you hit it right on the head.  These devices are following the normal technology demand curve.  A good example is flat screen TVs.  It was both demand and innovation that  contributed to the rapid decline in prices and increasae in capability.  I see both for EV batteries.  The current technology, as is, will not be what we have when the price comes down.  As for predicting the timing, lot's of luck.

Beth Stackpole
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Blogger
Political hot button
Beth Stackpole   4/3/2012 8:17:16 AM
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There's no doubt that there should be significant progress made in reducing the costs of EV batteries, particularly considering how much time, resources, and funding (government and private sector) is going into fueling new development in this area. However, given that it's an election year, I'm betting that this report probably leans towards a more bullish forecast as the current administration wants to paint its efforts in a favorable light. Hopefully, people can see past the politics and focus in on the important takeaway that there will be light at the end of the tunnel and with enough grit and engineering ingenuity, EV battery costs will come down over time, just like the cost of any new innovation. It's all part of the process.

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