Power batteries have entered the 0.3 yuan/Wh era and have fallen below the cost line of second- and third-tier manufacturers!
Several industry chain insiders revealed that in order to maintain its market position, CATL is sorting out production line resources and promoting cost reduction; BYD's Fudi Battery also issued an internal notice recently, urging the team to continue to reduce costs.
According to reports, CATL is promoting 173Ah VDA-spec lithium iron phosphate batteries to automakers, which come standard with 2.2C rate fast charging and take the route of large single products. Industry insiders said, "Several automakers will switch to this product in mid-24, and the price of batteries will not exceed 0.4 yuan/Wh. The price will not increase with the increase in quantity, and the target is the pure electric market of 100,000-200,000 yuan." The market speculates that with CATL and BYD pushing for cost reduction, will power batteries fall to, or even fall below "0.3 yuan/Wh"?
This is not groundless. Recently, Cao Li, vice president of Leapmotor, said in an interview with the media that the purchase price of Leapmotor's iron-lithium battery cells has reached 0.4 yuan/Wh, and will be lower than 0.4 yuan in the middle of the year. He believes that "the price of power batteries can be compressed to 0.32 yuan/Wh."
What is the concept of 0.32 yuan/Wh?
According to calculations, based on the price of lithium carbonate of 80,000 yuan, the cost of the leading iron-lithium battery cells is expected to be around 0.32 yuan/Wh (excluding tax), and the cost of the leading ternary 523 battery cells is expected to be around 0.45 yuan/Wh (excluding tax); while the cost of iron-lithium and ternary battery cells of second-tier manufacturers is about 0.37/Wh and 0.50/Wh respectively.
Entrepreneur @ The world of eMobility | eMobility infrastructure and manufacture
2moI believe energy storage costs will drop to as low as 1 cent per kilowatt-hour in the future. Solar power generation at 3 cents, combined with 1 cent storage costs, results in 4 cents per kilowatt-hour, making solar power available 24/7. This is a game-changer. Furthermore, this also impacts the cost of batteries for electric vehicles. As battery prices continue to fall, electric cars will become increasingly affordable because, currently, the dominant cost factor is the battery itself, especially compared to gasoline or diesel vehicles which are produced in much larger numbers. We need to recognize and understand this shift. The future will reveal how these technological advancements shape not only the energy market but also the automotive industry.
R&D Technical Senior Manager - AC/AC Converters | Resonant Converters | Induction Cooktops | Power Electronics | Innovation | Quality
2moHi Keven , thanks for sharing, it seems very interesting. Unfortunately I cannot open the link, could you post it in the comments? Thanks!
Keven chen What is the mass and volume of a 60kWh to 90kWh and how does it compare to the current technology. I see iron and I hear heavy. I've read a lot on other iron based battery tech and it is much much larger than a Lithium equivalent. A price drop would certainly be welcome for early EV adopters like me. The 15%-80% is still 20-30 minutes on a 250k charger, that would be excellent. However it sounds like its charge speed is closer to an hour. (Tesla being 4C)
These are extraordinary prices and highly respectable charging speeds, Keven. While 5-6 C charging is great fun to watch, I'm not sure how necessary they are for the mainstream EV buyer.