Publication Detail
The Cost of Manufacturing Electric Vehicle Batteries
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UCD-ITS-RR-99-05 Research Report Download PDF |
Suggested Citation:
Lipman, Timothy E. (1999) The Cost of Manufacturing Electric Vehicle Batteries. Institute of Transportation Studies, University of California, Davis, Research Report UCD-ITS-RR-99-05
Batteries suitable for use in electric vehicles (EVs) are in various stages of development, depending on the battery type. This report focuses on what today are generally considered the three most likely choices of battery chemistry for use in near to mid-term production EVs: lead-acid, nickel metal hydride (NiMH), and lithium-ion (Li-ion). Sealed lead-acid batteries are a relatively mature product, produced by such companies as Johnson Controls, Inc., Horizon Battery Company, and Japan Battery Storage Company. Nickel metal hydride batteries are currently in pilot-scale to low volume production by GM Ovonic (a joint venture between Ovonic Battery Company and General Motors), Panasonic EV Energy, and SAFT. Lithium-ion batteries are in pilot-scale production by Sony and SAFT. Factories to produce larger production volumes of NiMH and Li-ion batteries are currently under construction, with production expected in the next one to two years.
The general methodology employed in this study is to make use of a battery performance model developed at ITS-Davis by Dr. Andy Burke (1999) to determine battery design specifications for various battery types. Using these specifications, quantities of the various materials needed to manufacture a given battery are estimated. These materials are then costed by obtaining quotes from battery component suppliers. Finally, additional battery manufacturing and selling costs are estimated based on a variety of sources. The study considers a range of production volumes, in order estimate the reductions in manufacturing costs that occur through economies of scale in materials purchase, and in other factory costs.
The model developed by Dr. Burke currently is capable of analyzing lead-acid, NiMH, and nickel-cadmium battery types. The model has not yet been developed to analyze Li-ion batteries. As a result, only lead-acid and NiMH battery costs are analyzed in detail in this report. Li-ion battery materials cost estimates from the academic literature are discussed, however, and overall battery cost estimates and cost targets from different sources are also reported.
The general methodology employed in this study is to make use of a battery performance model developed at ITS-Davis by Dr. Andy Burke (1999) to determine battery design specifications for various battery types. Using these specifications, quantities of the various materials needed to manufacture a given battery are estimated. These materials are then costed by obtaining quotes from battery component suppliers. Finally, additional battery manufacturing and selling costs are estimated based on a variety of sources. The study considers a range of production volumes, in order estimate the reductions in manufacturing costs that occur through economies of scale in materials purchase, and in other factory costs.
The model developed by Dr. Burke currently is capable of analyzing lead-acid, NiMH, and nickel-cadmium battery types. The model has not yet been developed to analyze Li-ion batteries. As a result, only lead-acid and NiMH battery costs are analyzed in detail in this report. Li-ion battery materials cost estimates from the academic literature are discussed, however, and overall battery cost estimates and cost targets from different sources are also reported.