Are lithium-ion batteries the future of electric vehicles?

Lithium-ion batteries (LiBs) are pivotal in the shift towards electric mobility, having seen an 85 % reduction in production costs over the past decade. However, achieving even more significant cost reductions is vital to making battery electric vehicles (BEVs) widespread and competitive with internal combustion engine vehicles (ICEVs).

How much does a 1 kWh cell cost?

Costs declined since, with recent cost models putting cells at $106 (NMC 622) and $98 (NMC 811) for the production of 1 kWh cell in Europe and the United States. Cell manufacturing in Gigafactories requires 30–50 kWh of energy (electricity and heat) to produce 1 kWh of cell capacity .

What is the market share of LFP battery technology in 2021?

Driven by this, the output of LFP battery technology outstripped the NMC output in May 2021 in China , a country with a 79 % share in the global lithium-ion battery manufacturing capacity in 2021 . As can be seen above, the prediction for the market share of LiB technologies in the following years is challenging.

Are battery storage costs based on long-term planning models?

Battery storage costs have evolved rapidly over the past several years, necessitating an update to storage cost projections used in long-term planning models and other activities. This work documents the development of these projections, which are based on recent publications of storage costs.

Is the unit price of a battery cell based on factory size?

However, a high-volume market for all components of battery cells except cathode active material is assumed , meaning that the unit price of all components in a battery cell except cathode active material are independent of factory size. The latter approach is adopted in this work.

Is the battery market a stable market?

Recent studies show confidence in a more stable battery market growth and, across time-specific studies, authors expect continuously declining battery cost regardless of raw material price developments.