Lithium batteries are too expensive

Are lithium-ion batteries worth it?

Fluctuating solar and wind power require lots of energy storage, and lithium-ion batteries seem like the obvious choice—but they are far too expensive to play a major role. A pair of 500-foot smokestacks rise from a natural-gas power plant on the harbor of Moss Landing, California, casting an industrial pall over the pretty seaside town.

How much does a lithium ion battery cost?

At the moment the average cost of a lithium-ion battery pack is about $140 per kilowatt hour. The holy grail is $100 per kilowatt hour: at that point EVs will become cost-competitive with combustion ones, according to BloombergNEF, a consultancy. Battery-makers could reach this goal within the next couple of years.

Are lithium-ion batteries going down?

The work was supported by the Alfred P. Sloan Foundation. The cost of lithium-ion batteries for phones, laptops, and cars has plunged over the years, and an MIT study shows just how dramatic that drop has been. The change is akin to that of solar and wind energy, and further declines may yet be possible, the researchers say.

Is lithium-ion technology too expensive?

Not only is lithium-ion technology too expensive for this role, but limited battery life means it’s not well suited to filling gaps during the days, weeks, and even months when wind and solar generation flags. This problem is particularly acute in California, where both wind and solar fall off precipitously during the fall and winter months.

Are lithium-ion batteries sold directly to consumers?

Most lithium-ion batteries are not sold directly to consumers — you can’t run down to your typical corner drugstore to pick up a replacement battery for your iPhone, your PC, or your electric car. Instead, manufacturers buy lithium-ion batteries and build them into electronics and cars.

Why are batteries so expensive?

This phenomenon is driven in part by economies of scale: as more batteries are made, producers can spread out the up-front costs of building factories, and use their influence over suppliers to push for lower prices on crucial inputs.