Reuters is reporting on a new study that suggests the cost of lithium-ion batteries used in electric vehicles could plummet dramatically by 2025. Consulting firm McKinsey & Co. conducted the study, which indicated increasing oil prices and tougher fuel economy standards could force automakers to build more electric cars, thereby increasing the scale of lithium-ion battery manufacturing by significant margins. In addition, the research predicts consumer electronics companies like Apple may lend some technology advancements to reduce costs associated with producing the battery packs themselves. All told, the study expects to see prices fall from $500-$600 per kilowatt hour to $200 by 2020 and $160 by 2025.

For example, Reuters points out that the 23 kilowatt hour battery in the 2013 Ford Focus Electric is estimated to cost between $12,000 and $15,000. The McKinsey study claims that if fuel prices hold steady at $3.50 per gallon and batteries fall to the projected levels, automakers could begin to offer price-competitive electric vehicles.

The study also indicates battery manufacturers may begin to standardize cell construction and production, further reducing the cost of equipment needed to produce the packs.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 31 Comments
      Blake
      • 2 Years Ago
      "if fuel prices hold steady at $3.50 per gallon" http://www.youtube.com/watch?v=FopyRHHlt3M
      • 2 Years Ago
      [blocked]
      Hazdaz
      • 2 Years Ago
      While the ICE is progressing in small steps, maybe 3 or 4% every year, EV technology (namely batteries), is progressing at 5, 10, 15% or even more every year. Density is going up. Cost is coming down. There is no doubt that today's EVs are compromised because of both cost and size, as well as limited range. For some folks the compromise is worth it. But as all those improve over the never few decades, the compromises will get lessened and lessened some more, to the point where its going to be a non-issue to buy an EV.
      Andre Neves
      • 2 Years Ago
      In related news, U.S. troops will stay in Afghanistan until 2024. And how is this related? Well... http://www.nytimes.com/2010/06/14/world/asia/14minerals.html?pagewanted=all Now, are you sheep still thinking that we're over there fighting terrorists? LoL. The U.S military is risking their lives for corporations and our government's special interest lobbyists. Downvote me all you want for making this into a political post, but people need to start talking about these things and wake the rest of the folks up.
        alexlivefree
        • 2 Years Ago
        @Andre Neves
        I have known this for years. What's even worse is that we are protecting Chinese interests as well, since they have mines over their.
        justgoawaymad
        • 2 Years Ago
        @Andre Neves
        Im from earth......where are you from?
        • 2 Years Ago
        @Andre Neves
        [blocked]
      Chris
      • 2 Years Ago
      until the price goes down to equal that of a non EV I will not be buying one. I love the idea of an EV but I can't pay the price.
      • 2 Years Ago
      [blocked]
      TrueDat
      • 2 Years Ago
      i wouldn't call a 70% decrease over 13 years a "plunge"...
      gfviperman
      • 2 Years Ago
      Good!!! I'll be dead!!!
      Seph
      • 2 Years Ago
      China and Australia like this, but the mountains dislike this. Way to go EV, let's go green.
      Drakkon
      • 2 Years Ago
      I'm all for this to be honest. There is a good chance my next car will have battery assist of some type. However, we all need to keep our eyes open, enviro-philes included that we are trading the benefits to the carbon cycle with the costs of the heavy metals cycle. Plan AHEAD people so we are not facing piles of waste in 2050.
        Brian E Parker
        • 2 Years Ago
        @Drakkon
        You do realize that these batteries are made with Lithium? As in Atomic number 3? And that Lithium used in batteries is 100% recyclable?
          • 2 Years Ago
          @Brian E Parker
          [blocked]
        • 2 Years Ago
        @Drakkon
        [blocked]
          • 2 Years Ago
          [blocked]
      • 2 Years Ago
      [blocked]
    • Load More Comments