We have another report on dramatic Lithium Game Changer for the Electric Cars mass market applications. This time it is from Elon Musk and as reported by AutoBlogGreen, who confirms previous estimations that prices for Lithium Batteries can drop to $200 per kWh in the nearest future.
How significant is it? Coupled with rumors about potential breakthrough in Lithium Batteries technology for the mass market electric cars from Renault, it means that Renault Zoe with 220 miles range can have 35 kWh battery at a cost price of $7,000.
With Renault leasing scheme this cost can be translated into monthly payments of $73 dollars, assuming 8 years warranty on the battery. Now the scheme for Renault ZE electric cars starts at just under $100 dollars payment per month for 100 mile range battery and depends of your mileage per year. Economically now we can talk about electric cars like Renault Zoe or Nissan Leaf at the entry cost level of $20,000 dollars and battery lease payments of $100 per month. If they can deliver 220 miles range we can talk about mass market for electric cars.
Where our Lithium Developers are coming into the Energy Transition Play? Cost of Lithium in Lithium Battery's production cost is below 2%. Now for all Lithium Battery makers the Security of Supply is more important than the cost of the metal itself. All major Lithium producers have increased prices for 2012 and Japanese, Korean and Chinese companies are taking stakes in Lithium Junior Miners with off-take Lithium agreements.
"We have a very interesting report from Charging Point in Europe. Could it be true? We will be searching for confirmation. The price for the Lithium Battery lease should go up in this case, but it will be the small price to pay for the range of 220 miles, which will be comparable to Tesla Model S premium specification, but in the budget market sector! If Renault Zoe price can stay in the £15k range - it will be the best entry point on cost basis and the game changer for the Electric Cars. We can start to talk about the mass market for Electric Cars!"
"ANALYSIS–ProspectingJournal.com–As the global demand for green technology intensifies, miners are turning their gaze towards elements that will power tomorrow’s electronics. At the heart of this push for green technology, utilized in Electronic Vehicles (EV), laptops and smartphones, is the ultra-light, high-energy metal—lithium.
Lithium is significantly lighter than traditional metals used in batteries and holds an energy density that can produce voltage that is over twice that of zinc-carbon and alkaline batteries. These characteristics allow lithium batteries to be compact and efficient, making them an essential function in EVs, laptops, smartphones and cameras."
Battery cost dropping below $200 per kWh soon, says Tesla Elon Musk
"During its recent fourth quarter 2011 financial results Q&A conference call, CEO Elon Musk had, of course, lots to say about Tesla Motors and its various products. One statement though, concerning the falling cost of batteries, spoke to the broader electric vehicle (EV) market and bears repeating. The high price of energy storage is, after all, one of the major barriers to lower EV prices and, consequently, faster consumer adoption.
We've heard in the past different estimates of battery costs. When the first Chevy Volt battery came off the line it was said to be around $500 or $600 per kWh. For its part, the Nissan Leaf pack was reported to be as low as $375 per kWh. Now, two years down the road what is Tesla saying about the price of its batteries?
A participant from JP Morgan asked (in torturous analyst-speak, using "dimension" as a verb) something to the effect of, "Could you speak about how certain you are of a $200-per-kWh battery price and where you see that number going?" Musk began his response by seeming to deny that figure represented the company's current cost but went on to say, "I do think that cost per kilowatt hour (kWh) at the cell level will decline below that, below $200, in the not-too-distant future."
So, how soon is the "not-too-distant future"? Perhaps 2015. That's the year Tesla is now aiming to begin production of its Gen 3 vehicle – what was historically code named "Blue Star." Tesla had originally planned to make the new Roadster after the Model X, but decided it could make a mass-market vehicle with a price tag in the $30,000 range sooner than it had previously thought.
For what it's worth, Elon isn't the only one talking about a significant downward price trend. Makoto Yoda, president of Mitsubishi's battery supplier, GS Yuasa, says that due to mass production, the price of its lithium batteries will soon be a quarter of what it was in 2009."