Lithium Ion Battery Cost to Fall Third by 2017

The cost of lithium-ion batteries is set to fall by a much as a third by 2017 according to market research firm Pike Research. 

The firm believes that manufacturing will become more efficient and access to lithium is increasing. The market for Li-ion batteries is projected to be $14.6 billion, up from $2 billion in 2011. Pike also thinks that electric cars will need continued government subsidies as long as Li-ion batteries remain at their current price. It predicts that electric vehicles, including hybrids, will make up just 1.7% of the global market in 2017. 

Li-ion batteries are currently expensive and make up a large portion of the cost of electric and hybrid vehicles. Shrinking the cost would make green vehicles more affordable to the public. It also means that vehicles like the Prius or Renault Zoe could use more batteries to extend their range, while maintaining the same price. 

Source: Green Car Web Site