Falling EV battery prices

[Koz]

This shouldn't surprise but is good to see confirmation. Time to green light more Voltecs.

http://www.bloomberg.com/news/2012-0...bnef-says.html

[Steverino]

"Prices for batteries have dropped 30 percent since 2009, making electric vehicles less expensive."

[mickey3]

The article says $800 per kwh so the volt battery should be $800*16=$12800
Then it says in 2012 it could fall to $689 per kwh $689*16=$11024

This implies that GM is subsidizing the battery right now since it is selling for under $3K.

[Matt979]

It would be intresting to know how much the actual material cost is, as with any electronics that plus a small assembly fee should be the lowest price. Anyway to find out?

[Uncle Rollo]

Matt, That would be true if you didnt have to pay for the machinery to make/assemble the materials, or the fuel to ship it, or the testing to prove it, etc. There are a lot of costs that are wrapped up in the final price of anything you buy.

Rollo

[Koz]

The article says $800 per kwh so the volt battery should be $800*16=$12800
Then it says in 2012 it could fall to $689 per kwh $689*16=$11024

This implies that GM is subsidizing the battery right now since it is selling for under $3K.

I believe someone checked and it is the battery pack housing that is around $3K, not with the cells.

[cnicholson]

As others has hinted at, we should not confuse "cost" (relating to the value of the inputs to make the battery) and "price" which is what the manufacturer charges. The article talks only of PRICE and points to SURPLUS as being the driver. This is not necessarily good news. It suggests only that manufacturers are struggling to hit their projected volumes and profit margins. The short term response (lowering price) could simply foreshadow a reduction in production for next years....

The key, ad Matt mentioned, is to look at trends in the COMPONENT COSTS (input chemicals / materials). Barring some game-changing advances in chemistry, the final price of batteries cannot decay (for long) at a rate higher than the component costs.