Production of Batteries for Electric and Hybrid Vehicles

In spite of the promise that electric vehicles (EVs) will greatly alleviate urban air pollution problems and reduce our dependence on imported oil, pure electric and hybrid electric vehicles (HEVs) may not prove to be a panacea for our transportation problems. The greatest challenges are in battery development. While battery weight is being reduced and vehicle range increased, less attention is given to the high costs and environmental impacts of battery production. Consumers don't want to pay extra for a clean car, and the nation may not want to trade tailpipe emissions for manufacturing emissions or future environmental problems from disposal.

Reducing the costs of lithium ion batteries could make EVs and HEVs more affordable.

One of the most promising battery types is lithium ion. These batteries are well on their way to meeting the challenging technical goals that have been set for vehicle batteries. However, they are still far from being able to meet the cost goals.

Argonne undertook a project for the U.S. Department of Energy (DOE) to estimate the costs of lithium-ion batteries and to project how these costs might change over time with additional research and development. Materials and their production methods were examined in detail. We also assessed the cost reductions that could be expected as the result of material substitution, economies of scale in production, design improvements, or development of new supplies.

Results

Breakdown of EV Costs

The most significant contributions to the costs of lithium-ion batteries are from battery materials. Of these, the cathode is the largest contributor. The total EV battery cost is about $3,500 over the U.S. Advanced Battery Consortium (USABC) goal, certainly enough to affect vehicle marketability. The hybrid, with a smaller total battery cost, exceeds the Partnership for a New Generation of Vehicles (PNGV) goal by only about $800, perhaps not enough to deter a potential buyer. The most important function served by this economic analysis is to point out the need for continued research on materials for high-performance, long-life batteries.

September 2007