Ford CEO: Battery Is Third of Electric Car Cost

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Thread: Ford CEO: Battery Is Third of Electric Car Cost

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    GMI Contributor Premium Member zete's Avatar
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    Ford CEO: Battery Is Third of Electric Car Cost

    Ford CEO: Battery Is Third of Electric Car Cost
    By MIKE RAMSEY
    Wall Street Journal


    One of the auto industry's most closely guarded secrets—the enormous cost of batteries for electric cars—has spilled out.

    Speaking at a forum on green technology on Monday, Ford Motor Co. Chief Executive Alan Mulally indicated battery packs for the company's Focus electric car costs between $12,000 and $15,000 apiece.

    "When you move into an all-electric vehicle, the battery size moves up to around 23 kilowatt hours, [and] it weighs around 600 to 700 pounds," Mr. Mulally said at Fortune magazine's Brainstorm Green conference in California.

    More at link.
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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    Interesting numbers, to be sure. Means the Volt's pack is $8k - 10k, which is what a lot of people thought.

    If batteries do come down to $300/kWh the packs in the Volt will drop by 1/2 to $4k - 5k, which would translate to that much off of a Volt if GM passes along all the savings.

    It'll be interesting to watch the year unfold in terms of battery tech, density and pricing.
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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    Sounds about right because if you take a full loaded Cruze and Focus and add a third you end up right about at the cost of the electric versions. A Cruze is more at about 25K and a Focus more around 23K. The Chevy extra cost being the gas motor that is involved.
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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    The Nissan 23kWh battery used by Renault in their battery lease program is about $13k.. since they sell you the car but lease the battery they had to disclose the actual value. That includes the packaging and electronics needed by the pack... or $565/kWh for a finished pack. I dont think Renault uses liquid cooling.

    GM said all the ancillary (packaging, liquid cooling, management electronics etc) stuff added 30% to the cost of the cells to make a whole pack for a Volt... my guess the battery in a Volt is $10k

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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    Quote Originally Posted by rueben44 View Post
    A Cruze is more at about 25K and a Focus more around 23K. The Chevy extra cost being the gas motor that is involved.
    Don't forget the slippery Volt body too for the extra cost, the focus body is almost the same between the EV and gas version.
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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    Not only is there the extra cost of the battery but the extra profit on top of that cost.
    Get the cost down and the extra profit will be lower also.

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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    Lower prices predicted by 2015, Focus battery may drop to less than $6000

    http://www.greencarcongress.com/2012...-20120420.html

    Roland Berger Strategy Consultants has updated its global Li-ion automotive battery study. In light of recently presented or announced vehicle models with electric, hybrid or plug-in-hybrid drives (xEV), Roland Berger experts expect the global LiB market to grow from US$1.5 billion to US$9-10 billion by 2015, despite scaled-back forecasts for previously announced models. Further growth to more than US$50 billion is forecast in the 2020 high growth scenario.

    This growth will, however, be accompanied by massive overcapacity, the consultancy notes—the resulting pricing pressures are already affecting orders for 2015. Market consolidation therefore looks certain. Five frontrunners—AESC, LG Chem, Panasonic/Sanyo, A123 Systems and SB LiMotive—will control almost 70% of the market by 2015.

    More than one hundred companies worldwide are currently active in the market for automotive Li-ion batteries. Production capacity in this market will probably be twice as large as demand in 2015, according to the consultancy.

    For 2015, Roland Berger envisages OEMs facing prices in the €180-200/kWh (US$237-264/kWh) range for high-energy packs on large orders. This will results in the current margins of approx. 5 to 10% also dropping in the medium term, according to Bernhart.

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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    I have read from an article that a recently released study by business analysis company McKinsey and Company suggests electric car battery prices are going to plummet in coming years. The firm believes that the cost of batteries for an electric car could drop 70 percent in the next 13 years.

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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    Quote Originally Posted by kens0105 View Post
    I have read from an article that a recently released study by business analysis company McKinsey and Company suggests electric car battery prices are going to plummet in coming years. The firm believes that the cost of batteries for an electric car could drop 70 percent in the next 13 years.


    The tax credits allowed the automakers to build it, and costs will drop over time. VOLTEC is key beyond the Volt because what if in a decade you can do a 30K electric Volt with 100 miles of range. Some people will drop the range extended. But what happens when you try an Equinox.

    Something else to remember, as costs for batteries drop, much of it will be due to increases in energy density so weight / size drops as well.

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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    The REAL question: Is trading the future battery replacement CO$T against the daily-accumulating gasoline-fuel consumption really a "WIN" today or merely a postponed "LOSS" tomorrow?

    And, this is especially the problem so long as each vehicle manufacturer continues to develop/use DIFFERENT battery types and configurations. What is needed is a single standardized battery type and configuration (envelope) -- like current flashlight batteries -- permitting vehicle owners to use whatever replacement battery (cheapest, longest life, most reliable/durable, etc.) that they wanted to use, without being held captive to the OEM.

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    Re: Ford CEO: Battery Is Third of Electric Car Cost

    Quote Originally Posted by 70AARCUDA View Post
    And, this is especially the problem so long as each vehicle manufacturer continues to develop/use DIFFERENT battery types and configurations.
    This is essentially what Tesla does with their battery, and everyone makes fun of them for stringing together 7000+ Panasonic laptop cells for each pack.. of course they get the cost advantage of mass production and pay about half of what every other company pays for batteries.

    50 years for now you will have no trouble rebuilding the battery pack in your Tesla Model S... good luck with the specialized batteries used by Nissan and GM.

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