Electricvehicle batteries’ cost may drop 70 pct by 2025study Reuters

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July 11 (Reuters) The cost of lithium-ion batteries in electrified vehicles could by more than 70 percent by as rising oil prices and stringent economy standards push to build more of these according to a McKinsey Co study on Wednesday.

Manufacturing these on a larger scale represents of the potential price reduction by McKinsey said. The expected of companies in the sector and new technology from consumer electronics like Apple Inc would help cut lithium-ion battery the consultancy added.

Cheaper batteries could the broader adoption of electrified potentially disrupting the transportation, and petroleum sectors, McKinsey

McKinsey predicts the price of a lithium-ion battery pack fall from between and $600 per kilowatt hour now to $200 in 2020 and to $160 by

If gasoline prices hover $3.50 per gallon or higher, that purchase batteries at per kilowatt hour could electrified vehicles that can with cars and trucks by advanced internal-combustion engines, are now significantly cheaper.

Battery costs represent one of the hurdles to the widespread adoption of vehicles, analysts say. The Department of Energy has set a goal to the cost of a battery pack to per kilowatt hour by 2014.


The 23-kilowatt-hour battery used in Electric, Ford Motor first electric passenger can cost between $12,000 and Chief Executive Officer Mulally said at a conference in That suggests Ford as much as $652 per kilowatt

Higher volumes are the biggest in falling battery prices, consultants said. Prices also drop if battery refine their manufacturing and use standardized equipment, they

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Regulation around the world, not in one region, is getting increasingly McKinsey consultant Russell said in an interview.

Hensley, who helped write the said the new standards expected to be in by the mid-2020s are too strict for the internal engine to meet.

If you want to in the automotive markets around the you actually need vehicles are emitting less carbon, said.

Battery costs also fall as the consumer industry, led by companies like keeps making rapid in expanding the life and power of batteries, according to the study.

Over time, those will work their way vehicles, said McKinsey John Newman, who is also an of the report. Batteries in the consumer sector are available today for $300 per kilowatt hour.

the consumer electronics industry as as any other industry that’s the costs lower, Newman

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