• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The End of an Era for Rolls-Royce
  • South Carolina Provides $1.29 Billion Incentive for new Scout Factory
  • Hyundai and Kia Criticized about Stolen Car Problems by Attorneys General
  • Dodge Rolls Out Final “Last Call” Model: a 1,025-Hp Challenger SRT Demon 170
  • Acura’s New Integra Type S Launching with 320 Hp
  • First Look: Ferrari Roma Spider
  • What do Americans Think of EV Ownership Today?
  • Challenger Fain Edges Closer to UAW Presidency
  • Week Ahead: All About the Cars — Except for the UAW Part
  • The Rearview Mirror: Birth of a Sports Car Legend
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • First Drive: 2023 Genesis Electrified GV70
    • First Drive: 2023 Nissan Ariya e-4orce AWD
    • A Week With: 2023 Jeep Compass Limited
    • A Week With: 2023 Cadillac Escalade V-Series
    • A Week With: 2023 Volvo XC40 AWD Ultimate
    • First Drive: 2024 Subaru Crosstrek
    • First Drive: 2023 Lexus RZ 450e
    • A Week With: 2023 Toyota GR Supra 3.0 Manual
    • First Impression: 2024 Volkswagen ID.Buzz
    • A Week With: 2023 Chevrolet Blazer RS AWD
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automobiles > EV Battery Costs Dropping Faster than Predicted

        EV Battery Costs Dropping Faster than Predicted

        China bus maker inks $1 billion deal with Michigan battery maker.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        March 25, 2015
        The HK Group is taking advantage of falling EV battery prices for its city buses.

        Don’t look now but the price of batteries packs are coming down.

        Battery cell costs will fall about 8% a year, according to a Stockholm Environment Institute study that found battery costs have been overestimated. Cells for electric vehicles fell about 14% a year from 2007 to 2014, according to the study.

        Stay Informed!

        Battery electric vehicles (EVs) are one of the key alternatives to gas- and diesel-driven vehicles. The costs of battery cells has always been one of biggest obstacles to the development of EVs, forcing manufacturers to trade off between a model’s price and the range it can travel on a single charge, the institute reported.

        Based an analysis of more than 80 separate estimates of the costs of lithium-ion battery cells, which are commonly used in EV battery packs, the study found that estimates fell from more than $1,000 to around $410 per kilowatt-hour during 2007 and 2014.

        Battery costs for EV market leaders Nissan and Tesla were found to be even lower, at around $300 per kWh. Many analyses, especially academic analyses, of the future market potential of EVs could thus be based on significant overestimates of battery costs.

        The study also shows that the rate of technological development, the learning and knowledge gained as more and more batteries are produced, has had a clear influence on costs, as would be expected: a cost reduction in the range 6-9% following each cumulative doubling of production.

        The authors suggest that continued declines of around 8% per year are likely, even without major advances in battery chemistry. However, there are large uncertainties in the calculations, as they are based on only a few years of EV development.

        Navigant Consulting Inc. also recently told Bloomberg battery packs for electric vehicles, loaded with lithium-ion cells, now cost around $496 a kilowatt-hour, a 60% drop from 2010. That could plunge to $175 within five years, according to Sam Jaffe, an industry analyst with Navigant Consulting Inc.

        Meanwhile, investment money continues to flow into battery plants despite the slow EV sales.

        (Tesla Model S nearly ready to drive itself. For more, Click Here.)

        XALT Energy LLC, based in Midland, Michigan, signed an agreement with Hybrid Kinetic Group, also known as the HK Group, of China for the supply of its Lithium Titanate batteries from its manufacturing facilities in Michigan for all‐electric buses in China. Production is expected to begin during the third quarter of 2015.The multi‐year contract, valued at more than $1 billion, will create 300 jobs this year.

        Dr. Yung Yeung, chairman of HK Group, said, “XALT’s high quality and cost competitive battery product fit very well with our group’s strategy of launching all‐electric public transit buses in large scale with our unique business model. This supply relationship is a fine example of Sino‐American energy cooperation.”

        (Click Here for details about the ePrix searching for the right formula.)

        “It has always been our objective to enable electrification of global transportation markets since we ventured into the battery industry several years ago,” said Dennis Townsend, chairman of XALT. “Today’s signing of the exclusive supply agreement with the HK Group witnesses a significant step forward towards that goal.”

        The electric buses will be fully powered by XALT batteries. Each bus will have 68‐100 KWh high performance rapid charging batteries, which can be recharged in less than 10 minutes. These electric buses will be leased to municipal transit operators throughout China

        (To see more about Mercedes planning to launch 10 plug-ins by 2017, Click Here.)

        The new, technologically advanced electric buses will reduce greenhouse gas emissions compared to current diesel powered buses: a major focus in China right now.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published
        2023 Rolls-Royce Black Badge Wraith Black Arrow nose REL

        The End of an Era for Rolls-Royce

        Yesterday
        Scout in neon on grille

        South Carolina Provides $1.29 Billion Incentive for new Scout Factory

        Yesterday
        2018 Hyundai Sonata front

        Hyundai and Kia Criticized about Stolen Car Problems by Attorneys General

        Yesterday

        One response to “EV Battery Costs Dropping Faster than Predicted”

        1. Jorge says:
          March 25, 2015 at 9:43 am

          Battery cost is important but also the size and weight of batteries limits the practicality of EVs. Larger vehicles like local delivery trucks, buses, etc. might be viable EVs if the cost and maintenance provides a realistic TCO.

          Reply

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: