Large R&D funds have been invested, but only small incremental improvements have been achieved so far, the report said. One challenge is that volumes remain small in automotive terms. The cost of the battery pack will come down to about $447 per kilowatt-hour by the year 2020 at scaled production, according to the report.
“The Li-ion battery looks set to be the chemistry of choice for the on-board energy storage market for the foreseeable future, taking over from nickel-metal hydride, which has been the preferred battery for hybrids to date,” says senior research analyst David Alexander.
“Li-ion batteries can supply the much greater capacity needed for battery electric and plug-in hybrid vehicles, and 2012 saw the launch and announcement of new models from many manufacturers, all featuring Li-ion batteries,” Alexander added.