22 Years' Battery Customization
Nov 16, 2022 Pageview：352
Since the innovation of electric cars, the market for batteries has largely expanded. The demand has risen, with consumers demanding better performance and durability. Manufacturers are not disappointing consumers.
A point of concern is always the price of batteries. It might not mean much for smaller applications, but EV owners will always feel the pinch or relief when battery prices shift.
Today, we will be talking about battery prices, focusing on lithium batteries and EVs. Understanding battery pricing can help you make a good decision and avoid losing money to low-quality products.
lithium battery Price Trend
When batteries were first invented, they cost a fortune. Today, however, prices have been dropping due to technological advancement and an increase in the number of manufacturers. It’s not as quick as in the past years but significant enough for consumers to feel.
In 2021, a lithium-ion battery pack was retailed at about $132 per kWh. Research shows that this figure included even batterie used in stationary storage and electric vehicles. In 2020, the average cost was about $140 per kWh, a figure that has dropped by less than 6% in 2022. Experts originally foretold a 9% decrease in 2021.
Battery prices have become a crucial aspect when it comes to electric transportation. Research indicates that batteries hold more than 30% of an EV’s total cost, which is why it’s a crucial consideration. It would be hard to use an EV if it does not have a good battery, and you must know that battery price trends depend on the demand for these machines.
The first EVs were extremely expensive, and only a few people could afford them. This is because the batteries back then were very expensive. The general cost has dropped significantly over the past ten years. In 2010, EV batteries retailed at $1220/kWh, which is much lower, as you can see above.
The rate of decline has indeed reduced, especially because the price of raw materials keeps increasing. Materials like lithium, cobalt, and nickel are becoming harder to access, which might reverse this downward trend in battery prices.
Different battery manufacturers are giving different solutions to meet the rising demand while dealing with production challenges. The limited supply of raw materials has become a major concern across the market, with many feeling the pressure.
Why is the price decline reducing?
A few years ago, experts projected lithium-ion prices to reduce significantly. Some thought it would drop so low allowing most people to own these vehicles. That is not the case today, though.
Don’t get this wrong. Lithium is an abundant mineral. However, there is still a huge lack of mining and refining capacity globally, which means a lithium shortage is witnessed across the market.
Simon Moores, CEO at Benchmark Mineral Intelligence, notes the supply of lithium got tighter this year, creating a shortage in the last few months. As such, there has been a significant rise in the price of battery-grade lithium carbonate. In 2021, it rose more than five times that of 2020.
The terms of most supplier contracts have changed greatly, which has impacted the high demand and slow supply. The pressure extended to the first quarter of 2022.
A Potential Upward Trend
Batteries have been dropping in price since 2012 as lithium supply has always been constant. However, due to the recent development, we should expect to see a rise in the prices for the first time in 2023. Experts argue that batteries could rise by $3kWh in the 2021 price, even though inflation may impact the final figures.
Luckily, productions are scaling up in many places, reducing the cost of battery manufacturing. That means a rise in price, if any, will majorly come from the demand for raw materials.
Ion-phosphate batteries, which are cheaper to produce, have always kept the average costs low. They, too, are expected to witness a price increase of about 15 years by 2023. How much more will lithium-ion batteries that use expensive raw materials like cobalt?
In conclusion, the lithium supply could slow down the decline in battery prices for the next few years. However, the long-term projection is still quite encouraging. According to experts, batteries might cost half of the $140/kWh by 2030. Technology is making extraction and refinement easier and easier.
How Much Does It Usually Cost to Replace Electric Vehicle Battery
Replacing an EV battery is quite expensive. While it will not cost you $25,000 or more, it’s still more expensive than gas-powered car batteries, especially due to the cost of raw materials.
EVs rely on electric motors instead of internal combustion engines. Hence, a large traction battery pack is required to give cars enough energy. Also, the batteries must be recharged.
Since EVs fully rely on the battery for power, the battery must carry a huge capacity and deliver the highest power performance. This makes them more expensive than conventional batteries.
On average, you will spend between $5000 and $9000 to get a good-quality battery. If you want a cheaper option, consider a simple refurbished EV battery, which can go for about $2000.
The price can rise over $10,000 depending on the manufacturer and the battery quality. Other factors like shipping and installation charges can also raise the price of replacing an EV battery.
When the time comes, we recommend getting your battery from a reliable source. Fake batteries are in supply today, which could prove costlier in the end. Always check the reputation of your supplier, and you can get a great deal.
EV Battery Recycling
Can EV batteries be recycled? Yes. Lithium-ion is the most popular battery choice for most EVs today. The raw material can be easily recycled to make other batteries or used in other products. This is one of the reasons li-ion batteries have grown significantly in popularity.
You will have recycling services in your region. Always ensure the batteries are packed properly when you take them for recycling since they can still cause problems. Most importantly, do not attempt recycling them yourself.
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