laptops

Falling Lithium Prices | Earth Wise

May 1, 2023 By EarthWise Leave a Comment

Lithium, the key element in the batteries that power electric cars, as well as smartphones, tablets, and laptop computers, is sometimes called white gold. Over time, the price of the metal has gone up and up. But recently, and surprisingly, the price of lithium has actually gone down, helping to make electric vehicles more affordable.

Over the first couple of months of this year, the price of lithium has dropped by nearly 20%. The price of cobalt, another important component of vehicle batteries, has fallen by more than half. Even copper, another battery material, has seen its price drop by 18%.

Many analysts predicted that prices of these commodities would stay high or even climb higher. The reason for the decline, as well as whether it is likely to persist, is the subject of much debate.

Some experts believe that the price drops are a result of demand not being as high as expected, perhaps related to slowing sales growth of EVs in Europe and China after certain subsidies expired. Other industry experts said that the drop was a result of new mines and processing plants providing additional supply sooner than was thought possible.

Despite the price drops, mining and processing lithium remains an extraordinarily profitable business. It costs from $5,000 to $8,000 to produce a ton of lithium that sells for ten times that amount. With such fat profit margins, there is no shortage of banks and investors eager to finance lithium mining and processing projects. Such profit margins are probably not sustainable and that will likely result in more reasonable prices over time.

There is plenty of lithium in the world. The huge demand for it is a recent phenomenon and the world is still working out how to meet that demand.

**********

Web Links

Falling Lithium Prices Are Making Electric Cars More Affordable

Photo, posted January 9, 2023, courtesy of Phillip Pessar via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Iron Flow Batteries | Earth Wise

November 15, 2021 By EarthWise Leave a Comment

Lithium-ion batteries power computers, cell phones, and increasingly, automobiles. They started out being rather expensive but have become dramatically cheaper over the last decade, with prices dropping about 90%. Batteries are needed to store clean power from wind and solar generation and lithium-ion batteries are increasingly being used for that purpose as well.

Utility-scale energy storage requires substantial battery installations and battery cost is still very much an inhibiting factor in the widespread adoption of the technology. Lithium-ion battery costs continue to drop but because they require expensive materials like lithium and cobalt, there are limits to how low their prices are likely to get.

As a result, researchers have continued to seek ways to produce batteries made out of cheaper materials. Among the more promising technologies are flow batteries, which are rechargeable batteries in which electrolyte flows through electrochemical cells from tanks.

Flow batteries are much larger than lithium-ion batteries and include physical pumps to move electrolytes. They typically are sold inside shipping containers. Clearly, such batteries are not suitable for use in vehicles, much less in consumer electronics. Nevertheless, they represent a practical option for grid storage.

A company called ESS has developed an iron flow battery suitable for utility energy storage. Clean energy firm CSB Energy plans to install iron flow batteries at several solar projects across the U.S. that will store enough energy to provide power 50,000 homes for a day. According to ESS, the iron-based batteries should sell for about half the price of lithium-ion batteries by 2025 and be able to store energy for longer periods.

**********

Web Links

New Iron-Based Batteries Offer an Alternative to Lithium

Photo, posted March 21, 2021, courtesy of Nenad Stojkovic via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

The Plunging Cost Of Lithium-Ion Batteries | Earth Wise

May 11, 2021 By EarthWise Leave a Comment

Lithium-ion batteries are the power source for phones, laptops, and electric cars. These rechargeable batteries were first commercially introduced in 1991. Since then, their performance has improved, and their cost has dropped tremendously.

There have been dramatic cost declines in many advanced technologies. The price of big-screen televisions is a prime example. Most people think of solar photovoltaic panels as the most exceptional case. In the 1970s, solar panels cost over $100 per watt. Today, they are 20 cents a watt.

How much lithium-ion batteries have dropped in price has been somewhat unclear. This is because much of the information about battery costs is in the form of closely held corporate data. Most lithium-ion batteries are not sold directly to consumers but rather are built into consumer electronics and cars. Large companies like Apple and Tesla buy batteries by the millions or manufacture them themselves, and the true costs are not publicly disclosed.

Recently, MIT researchers have carried out an extensive analysis of lithium-ion battery costs over the past three decades. The researchers found that the cost of these batteries has dropped by 97% over that period.

It is clear that the decline in battery costs has been an enabler of the recent growth in sales of electric vehicles. It is also clear that further declines in lithium-ion battery costs are likely to increase the batteries’ usage in stationary applications such as storing energy from intermittent green power sources like solar and wind.

The batteries have ever-improving energy density (energy stored within a given volume) and specific energy (energy stored within a given mass.) As lithium-ion batteries continue to get better and cheaper, their role in the world continues to grow.

**********

Web Links

Study reveals plunge in lithium-ion battery costs

Photo, posted October 26, 2020, courtesy of Ajay Suresh via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.