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GS Yuasa bringing new automotive Li-ion battery factory online; targeting lowering production costs to 25% of 2009 level

Nikkei. GS Yuasa Corp. will bring a new automotive Li-ion battery factory in Shiga Prefecture online next month, with the aim of reducing production costs.

“Through mass production, we will soon lower production costs to a quarter” of what they were when the company first started making such batteries in 2009, said President Makoto Yoda.

The annual output of the factory, which is being built with Mitsubishi Corp. and Mitsubishi Motors Corp. at a cost of ¥37.5 billion (US$471 million), will be enough to equip 50,000 Mitsubishi Motors i-MiEV electric vehicles. The plant will make batteries for the i-MiEV and Minicab-MiEV, and for i-MiEV-b ased EVs of France’s PSA Peugeot Citroën Group. A plug-in hybrid to be released in fiscal 2012 will also use batteries manufactured at the plant, according to Mitsubishi Motors President Osamu Masuko.

The partners are also building another plant at the same site for ¥30 billion (US$377 million), with the capacity to power 75,000 i-MiEVs a year.

Comments

Davemart

Here is where they were in April 2010 on costs:

'Lithium-ion battery packs for cars cost slightly more than 2 million yen ($21,463), Ono said. The price will probably drop to about 1 million yen ($10,731) when annual production is lifted to 42,000 i-MiEV cars, he said.'

http://www.autoobserver.com//2010/04/mitsubishi-gs-yuasa-joint-venture-consider-lithium-ion-battery-factory-in-europe.html

Let's hope they are now envisaging the cost going to around $6k per pack, which at 16kwh would come to $375kwh.

Its a shame they are not using Toshiba's phenomenal SCiB technology though.

Davemart

The plug in is the Outlander:

'Mitsubishi's official statement confirmed production of a plug-in version of the Outlander: "During fiscal 2012, Mitsubishi Motors will also be adding to its lineup an electric vehicle-based Outlander model, which will use a plug-in hybrid system derived from MMC's already existing EV technology."'

http://www.plugincars.com/mitsubishi-confirms-launch-2013-outlander-plug-hybrid-112132.html

HarveyD

Mass production is starting to have a progressive effect on batteries price. Another 3x drop would take it to about $125/Kwh and probably with a 3x increase in energy density to about 450 Wh/Kg. That would really put BEVs in front for future markets.

SJC

Even $200 per kWh and 300 kWh per kg would be enough to get it rolling. When you look at that mass production requirements to produce millions of cell per day per factory time 100s of factories, producing 1 million EVs per year is quite a job.

yoatmon

@ SJC:
300 kWh per kg??
Methinks you have a problem with your decimal point. Perhaps you meant 0.3 kWh / kg.

Arne

SJC,

You probably mean 300 Wh/kg, but that aside, the table below shows the battery weight for a 70 kWh battery (good for ~400 km range) at different energy densities.

120 Wh/kg --> 580 kg
200 Wh/kg --> 350 kg
300 Wh/kg --> 230 kg
400 Wh/kg --> 175 kg

As can be seen, above 300 Wh/kg the weight savings get incrementally smaller. A battery >70 kWh is probably never really necessary as we can expect wireless charging to become ubiquitous. Reducing the weight of a modern car by, say, 100 kg is nice, but nothing that will fundamentally change anything.

I would say 200 Wh/kg is more than enough to get it rolling. 300 Wh/kg is nice to have. 200 Wh/kg is doable with proven technology.

Davemart

Anne:
There is a second order effect going on here.Once range reaches 'enough' whatever that may be, perhaps 400 km as you suggest, then not only can the battery weight start going down but the weight of a lot of the other components can do likewise.
So we might be looking at in-wheel motors and carbon fibre, with of course electric steering, with weight losses compounding.

SJC

yes..watt hour, typo.

SJC

200 Wh/kg and $200 kWh sounds good.

mahonj

The problem with BEVs is that the distance travelled is very variable.
80% of the time, you can get away with (say) 25 KwH, but to get to 95%, you need 60 KwH and to get to 98% you need 100 Kw H (and so on).
A pure BEV will always need a battery which is 3x larger than it needs to be (unless it is an urban delivery vehicle with a known journey route).
Even if you have 300 mile electric range, you have a battery that is 4x larger than it needs to be most of the time.
Hence you are better off with a PHEV or some type of range extender.
Ideally, you can size the battery such that you can do 80% of the journeys on electric, and do the rest on ICE.

While automotive batteries are in short supply, PHEVs are a much better use of scarce battery resources.

Davemart

@mahonj:
It all depends on the energy density of the battery, and its cost.
You have extra weight and complication from a combustion engine, including the exhaust system etc, or if you use a fuel cell the tanks.
If you can hit around 400Wh/kg and good cost, it is probably not worth the bother, and you can keep it simple.
In vehicles where you are routinely going to do very high mileage it is a different matter, but there again PHEV's don't make much sense, as it only helps for the first few miles.

I come over as something of a fuel cell advocate, but in reality I am technology agnostic, and we can simply piece together the technologies we have available at any particular point in time, and in different ways for different uses.

SJC

I think 140-150 mile range with a lot of fast chargers would be enough. If I can get 10 kWh in 15 minutes while I sip my coffee at Starbucks, I have no range problem. Most days the range gets me to any from work, even commuting and when I need a bit extra I take a break and charge while I lunch or shop.

Lots of families have two cars in the U.S. the other one is a gasoline powered SUV let's say. But for dad commuting to and from work, and EV is just fine and saves a lot of money.

300 Wh/kg could come from vanadium, 400 Wh/kg could come from sulfur, but I would not wait for either. The real trick in driving the cost down for 200 Wh/kg batteries is the huge manufacturing required in quantity.

Getting to $200 per kWh is best done by higher energy density and not economies of scale. You build half as many cells per kWh you can bring the price down.

Engineer-Poet

Now the big question: does this mean that EVs could be 7% of the US fleet by 2021?

Davemart

@EP:
If recession in Europe etc leads to low pressure on oil prices then we might see a rise of around 40% from the winter low of around $3.11/US gallon to the June peak.
That would put petrol at around $4.15-4.30
This is into territory where BEVs are economically viable.

The more usual rise though is around 75%, so petrol would be around $5.30-45.

All this is aside any action in the Gulf forcing prices up to very high levels.

Since I can't see the mooted collapse in China happening, it now seems likely to me that oil prices will continue under severe pressure.

The 0.5 mbd the US gets from oil shales is overhyped enormously.

I would therefore see this year as being very bullish for electric cars.

Engineer-Poet

The fickle American consumer loses interest in fuel economy as soon as prices recede again. I think it's going to take something beyond low and predictable operating costs, like auto reviews touting zippiness, to get the cultural shift out of the early adopters into the mainstream.

Davemart

Hi EP,
I don't know what will happen in the US but with diesel here in the UK at £1.43/litre, around $8 US gallon and similar prices in the rest of Europe if the range is acceptable then there is an open and shut case for the Renault Kangoo ZE which retails after subsidy at the same price as the diesel.
Renault sell about 700,000 of them a year so any substantial fraction of that means that much of the volume needed for electric vehicles is available.
The low cost Renault Zoe car is due for release in the fall.
According to rumour it may have as much as a 30kwh battery even this year.

Herm

What is the cost of high quality laptop cells?.. those are manufactured in the millions so they should be at minimum cost for the present technology.

Dave.. the problem is that Europe is imploding, hopefully it will be contained.

kelly

$871 million committed to producing 125,000 EV battery packs ain't no flash in the bucket.

Consumers will have an alternative to oil.

Juan Carlos Zuleta

Davemart, oil price is but one factor affecting adoption of Li-ion batteries for electric cars. The other two I have identified are Li-battery technological development and acceptance of/resistance to change by governments, companies and consumers. To make things even more complicated, the three factors are interrelated (See: http://seekingalpha.com/article/188499-the-future-of-the-lithium-market-part-ii).

mahonj

I wonder will electrification develop on a broad or a narrow front.
A broad front would be where most cars go to stop/start, then BAS, then hybrid, then PHEV in various battery sizes.

A narrow front would be where a small number of people go for full BEVs and this opens up over the years.

Gasoline is about $8/ US gal (roughly the same as the UK and most of Europe).
We see almost zero electric cars in Ireland, and a few Prii. 73% of new cars are diesel (due to taxation measures be a previous green government).

So as far as Europe is concerned, the future seems to be more efficient ICE cars, with light hybridization blending in over time.

Also, even if demand in Europe falls, it will easily be covered by demand in developing regions - so don't expect a collapse in Europe to reduce oil prices very much.

Davemart

@Juan
The first part of your article seems to me the more relevant.
In it you say that oil price, technology and acceptance or resistance to change are the drivers.
My view is that the important one now is the first, as oil production is constricted enough that the consequences will become increasingly severe until major shifts away from oil are made.

Even better technology would be nice, but not essential, as for some classes of vehicles and uses ex taxes and with subsidies electric is already cheaper.

I quoted for instance Renault's commercial vehicles.
These sectors on their own are likely to be big enough to drive electric vehicles on to high enough production that cost comes way down and the technology develops.

The number of areas that can participate is big enough so that resistance in one will not stop things.
For instance the US has said that the rebate they are offering will be for alternative fuel vehicles not just electric.
In their case I can see a substantial switch to NG then, but most regions have not got the spare capacity to make that attractive.
China for instance will be looking basically to trade coal in for petrol to power its vehicles, not NG which it does not have surpluses of.

So the last two factors might slow down or speed things up a little, but will not have fundamental importance other than regionally now that the technology has reached a 'good enough' level.
Oil prices are the big one.

Davemart

@mahonj:
Some sort of progression through various levels of hybridisation might be likely if the costs progressed in the same way.
They don't, and full electric cars are inherently cheaper than plug in hybrids.

Micro hybrids and perhaps for bigger cars hybrids are pretty much a done deal, and will certainly expand.

However once you get into the debate about plug-ins as against pure electric, the inherent simplicity and lower parts count of the BEV makes them cheaper, to buy and to run.

For real mass adoption of BEVs oil prices have to go high enough to make some trade off of convenience worthwhile, while things like the Volt retain full utility.

So for cost reasons I see BEVs ahead of plug ins in likely mass adoption.

william g irwin

I still like the idea of strapping a 5-10kw or so gas emergency generator to a BEV for trips. Some form of quick hitch from a garage stand or trailer, and a 220v feed into the car, and you have a range extender that can keep up given occasional food and bathroom stops on a trip. And you have the Egen at home to run the house in emergency conditions too.
Expressway driving supposedly consumes much less than 20hp in today's low CD vehicles, so the Egen can almost keep up, and you don't need the full ICE complexity, weight, and frame strength of a full hybrid. The Egen can run for 6-8 hrs on a small tank of gas.

SJC

To me the idea is to reduce imported oil, to do that you need to reduce fuel consumption in heavy users like long haul trucks, delivery trucks and commuters. We can use LNG for long haul and CNG for delivery, but may need EV for commuters.

If you under size the genset, you can not climb at speed. You may need 60 hp for an hour or more and you will not have that.

We need to think outside the present frame, not all cars need to do all things. If I can commute in an EV, have chargers everywhere and save $3000 per year on gasoline, I am interested.

Engineer-Poet

AC Propulsion repowered a Honda with PbSO4 batteries back in the 90's. For extended-range operation, they added a trailer carrying a generator powered by a 250cc motorcycle engine. With this, they climbed mountain passes.

Go read the white papers.

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