The cost of batteries is one of the major hurdles standing in the way of widespread use of electric cars and household solar batteries. … Batteries have so far been prohibitively expensive. … However, since 2011 the number of electric vehicles worldwide has doubled each year…. the cost of full automotive Lithium ion battery packs has already reduced to around US$410 per kilowatt-hour industry-wide. Market-leading manufacturers such as Nissan and Tesla are already seeing prices around US$300 per kWh. In our previous work we estimated these levels to be reached only in 2018 and 2022, respectively.
As battery costs decrease, technologies such as electric vehicles and household energy storage are likely to undergo a transition, from niche products in the hands of early adopters to standard acquisitions by pragmatic consumers.
Companies in the sector are well aware of this potential for transition. This explains why, for example, Tesla Motors is making a US$5 billion dollar bet in the shape of a massive battery factory. By doing so, the company hopes to gain economies of scale and reduce costs further.