Redefining Energy 153. The Battery-coaster - Oct24
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Oct 7, 2024 Simon Engelke, Chair of Battery Associates and expert in battery technology and workforce training, joins to discuss the surging battery infrastructure, which is growing three times faster than solar. He notes record-breaking production in China and the fierce competition driving prices down rapidly. Engelke explores the potential of LFP over NMC chemistries, the significance of a skilled workforce for gigafactories, and the need for global collaboration to navigate this volatile landscape. Ultimately, he emphasizes the importance of human capital in shaping a sustainable electric future.
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Battery Price Collapse
- Battery cell and system prices have dropped significantly, especially in China, reaching the $50/kWh mark.
- This price drop is similar to what happened in the solar industry, raising concerns about market sustainability and competition.
Factors Affecting Battery Prices
- Several factors contribute to the battery price collapse, including lower raw material costs, manufacturing improvements, and LFP chemistry's cost-effectiveness.
- Reduced EV demand and local market competition also play a role, making the long-term price point uncertain.
Battery Chemistry Trends
- LFP is becoming the dominant battery chemistry due to its performance and cost-effectiveness, particularly in China where it's becoming the standard for stationary storage.
- NMC chemistries remain relevant for higher performance applications, but the decreased cost of nickel and cobalt may affect their dominance.