LithiumIon Battery Prices Likely to Plummet but Cost of Electric …

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Lithium-Ion Battery Prices to Plummet, but Cost of Electric May Be Slow to Follow

Aaron is a law clerk in Hodgson Russ s Litigation Practice Group.

If the industry experts are correct, for hybrid and electric vehicles start to drop, but not nearly as as you might expect.

According to the Street Journal . the head of a lithium-ion battery-maker revealed his company plans to halve the of lithium-ion batteries for both and plug-in electric vehicles the next six years at the 2013 Show in Novi, Michigan, month.

We have an internal target to go by at least a factor of two by 2020,” Prabhakar Patil, chief officer of LG Chem Power in the Wall Street Journal “I am very positive in terms of the that I see.”

Battery are among the major reasons for the in price between traditional and hybrid or electric vehicles. On the Patel’s revelation sounds great news for car buyers.

The


The Journal reports that the of the electronics systems that the batteries is not expected to fall of a lack of standardization in the auto In other words, while automakers may use the same types of batteries, they typically use customized systems to operate the These systems are expensive and consuming to produce.

The real issue is the cost of the system,” Brian Kessler, of Power Solutions, a division of Controls Inc. said in the .

Eliica (Electric Lithium-Ion Car)

Kessler concluded the cost of of the systems means that, the price of an electric vehicle is to fall, the drop will not be even if companies like LG cut battery costs. Given the systems represent part of the vehicle development, and competition is a key in that equation, industry-wide will be difficult to achieve.

Electric car customers concerned cost have some for optimism. According to both the and the Christian Science Monitor . Motors has decided to develop an vehicle designed to rival of Tesla Motors, whose has soared in the last year. companies reportedly intend to vehicles that can drive 200 on a single charge, and they sell the cars for $30,000-$35,000.

while Tesla plans to its new vehicle in 2016, GM vice Douglas Parks told the Science Monitor the automaker not release its new electric plug-in car any soon because of high costs.

While the number of Americans electric plug-in vehicles has steadily in recent years, the occupy slightly less four percent of the entire market share as of August according to data from the Drive Transportation Association. does not expect an immediate in that number.

Demand is right now,” Patil Automotive News. “But we see increased regulations on CO2 emissions in the Union, United States, and on the horizon, three of the biggest and because of that, the demand for ion batteries will increase.”

With an increase in demand, the is that ultimately the overall of hybrid and plug-in electric using lithium-ion batteries begin to drop, even a lack of standardization in the electronics operating the batteries. A number of help to support this including the fact that the has already become more of hybrid vehicles (due in no part to their cost-saving and that car makers continue in endeavor to reach their emission mandates from authorities. It will be interesting to see Patil’s prediction comes over the coming years, would be a major boon to the

Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)
Eliica (Electric Lithium-Ion Car)

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