The use of lithium-ion batteries by automakers is expected grow seven-fold by 2025, helped mainly by their dropping costs as well as by subsidies and incentives in many countries, particularly in China, to encourage sales of electric vehicles (EVs)
According to Will Adams, Metal Bulletin’s Head of Research for the battery materials, base metals and precious metals markets, demand for lithium-ion batteries will soar to 650 GWh by 2025, from only 70 GWh last year.
The need to store electricity, generated by renewable energy sources such as wind and solar, will also help demand to grow, he said on a report published Monday.
Battery pack costs have fallen to around $200/kWh this year, from around $1 000/kWh in 2010, and may reach a battery cell cost of $100/kWh this year, with its battery pack costs expected to reach that level in 2020.
The $100/kWh price tag for a battery pack is thought to be the tipping point where EV and internal combustion engine vehicles (ICE) costs are similar.
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