The cost of car batteries is falling as manufacturers find new uses for the energy stored inside.
A survey of more than 1,000 car buyers by Consumer Reports found that the average cost of a battery pack dropped from £10.50 in 2015 to just £8.60 in 2019, and a battery with 50Wh of capacity was priced at £2,816 in 2019.
“It is a real world situation that has really changed,” said John Cottrell, the executive director of Consumer Reports.
“There are very few batteries that are still manufactured in China.
There are a lot of batteries out there and they are getting cheaper and cheaper.”
The UK’s biggest car battery maker, Daimler, said the cost of batteries is expected to fall by between £2 and £5, depending on the type of battery and the size.
The firm said the average price of a 60Wh pack dropped to £1,973 in 2019 and is expected at around £1.50 for 50Wh in 2020.
The biggest drop in the cost was seen in the battery pack for electric vehicles.
The average price fell from £7.80 to £5.70 per kWh.
However, some manufacturers, including General Motors and Volkswagen, said prices are not falling and will fall even more.
“I don’t think there is a huge amount of reduction,” said Jim McCall, senior analyst at IHS Automotive.
“But we do know that manufacturers are using battery technology to improve efficiency and reduce fuel consumption.”
And the price of the battery is still a very important component to that.
“But battery makers have warned that they could be subject to new regulatory and environmental restrictions and the threat of price increases.”
If a government were to put a cap on battery production, it would make it much more difficult for companies to continue producing batteries,” said Mr McCall.”
The industry is already in a situation where they can’t continue making battery technology products.
“In its report, Consumer Reports said the battery manufacturers were also under pressure to cut emissions as the UK’s reliance on fossil fuels was increasing.”
This is due to the fact that the UK is one of the world’s largest emitters of greenhouse gases and carbon dioxide,” said the report.”
A cap on global battery production could also mean that the batteries are not exported, thus creating a trade war that could put some battery manufacturers out of business.
“However, it also noted that some manufacturers have managed to keep costs down by switching from large-scale production to smaller scale production.”
Even with large scale production, the price is still rising, as it is becoming less cost-effective to manufacture a battery and it is much more efficient to manufacture batteries with smaller battery packs,” the report said.