Li-ion Batteries' Installed Cost to Fall by One-third-plus by 2017-end: Pike Research

Taipei, April 13, 2012 (CENS)--Good news for the global electric vehicle (EV) industry is that as manufacturing efficiencies improve and access to lithium expands, the installed cost of Lithium-ion (Li-ion) batteries will fall by more than one-third by the end of 2017, according to a recent report from Pike Research.

The market research and consulting firm specializing in analysis of global clean technology markets said that EVs have a significant role to play in reducing emission and save the volatile oil reserve; and EVs would continue to be a niche market through the remainder of this decade.

In terms of revenue, the market for Li-ion batteries for transportation will grow from US$2.0 billion annually in 2011 to more than US$14.6 billion by 2017, the clean-tech market intelligence firm forecasts.

“The market for Li-ion batteries will be driven primarily by plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs), which require much larger battery packs than hybrids,” says research director John Gartner. “Battery chemistries that prioritize energy capacity over power density can satisfy both the PHEV and EV battery segments, enabling vendors to offer products to multiple vendors for multiple models. Reducing the installed price of EV batteries to $523 per kilowatt hour in 2017 will be a critical step towards making PEVs cost-competitive with petroleum-powered vehicles.”

Although most PHEVs today have a range of between 40 and 100 miles, continued concerns over range and the availability of charging infrastructure remain among the biggest impediments to the wider adoption of Li-ion batteries. On the supply side, challenges such as achieving higher energy density, better safety, and greater discharge/charge rates linger despite advances in battery technology. Although a number of Li-ion chemistries are available today, Pike Research said, none of them can claim to be the ideal solution. Manufacturers must make tradeoffs in choosing a particular type of Li-ion battery over others.