If you want to sell more of your product, it must do its job well. But that’s not all that’s necessary. You also have to sell your product at a competitive price. These two strategies have kept lead-acid battery sales buoyant for over a century. We wish we could say the same for electric car sales, which are lagging as consumer interest ebbs. No wonder the media are predicting a battery price war this year.
Battery Price War Escalates in China
A battery can cost half the price of an electric car. This factor in turn makes electric cars more expensive than gasoline ones. Prices of raw-materials in lithium-ion batteries are behind this imbalance. This is why scientists are searching for alternatives.
Meanwhile, China’s BYD corporation is predicting a 50% saving on the price of its lithium-ion batteries this year. Its CATL competitor also has something similar in mind. This sounds like the makings of a battery price war to us. Provided quality and safety remain paramount, this should be good news for consumers.
The omission of rare cobalt metal could be a contributing factor in the cheaper lithium-ion batteries BYD and CATL are promising. But they are also tracking Toyota’s solid-state batteries with interest, which is becoming a China government priority according to The Conversation website.
How Will Electric Car Prices Trend In Future?
Three factors are likely to come into play here. The first two will probably be greater driving range between charges, and improved battery safety. But cost will always also have its say. The battery price war winner could well be the manufacturer who finds the best compromise between these three factors.
It’s clear that electric car battery prices will have to come down, before the next boom in the electric vehicle market. The competitive variables will therefore be battery driving range, and improved battery safety.
We are beginning to wonder whether lithium-ion chemistry is up to this challenge. Perhaps a combination of sodium-ion and solid electrolyte will do the trick. It is too early in the new battery revolution to say.
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