A Bottom-Up Approach to Lithium-Ion Battery Cost Modeling with a Focus on Cathode Active Materials

Marc Wentker, Matthew Greenwood and Jens Leker
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Marc Wentker: Institute of Business Administration at the Department of Chemistry and Pharmacy (IfbM), University of Münster, Leonardo-Campus 1, 48149 Münster, Germany
Matthew Greenwood: Institute of Business Administration at the Department of Chemistry and Pharmacy (IfbM), University of Münster, Leonardo-Campus 1, 48149 Münster, Germany
Jens Leker: Institute of Business Administration at the Department of Chemistry and Pharmacy (IfbM), University of Münster, Leonardo-Campus 1, 48149 Münster, Germany

Energies, 2019, vol. 12, issue 3, 1-18

Abstract: In this study, we develop a method for calculating electric vehicle lithium-ion battery pack performance and cost. To begin, we construct a model allowing for calculation of cell performance and material cost using a bottom-up approach starting with real-world material costs. It thus provides a supplement to existing models, which often begin with fixed cathode active material (CAM) prices that do not reflect raw metal price fluctuations. We collect and display data from the London Metal Exchange to show that such metal prices, in this case specifically cobalt and nickel, do indeed fluctuate and cannot be assumed to remain static or decrease consistently. We input this data into our model, which allows for a visualization of the effects of these metal price fluctuations on the prices of the CAMs. CAMs analyzed include various lithium transition metal oxide-type layered oxide (NMC and NCA) technologies, as well as cubic spinel oxide (LMO), high voltage spinel oxide (LNMO), and lithium metal phosphate (LFP). The calculated CAM costs are combined with additional cell component costs in order to calculate full cell costs, which are in turn scaled up to full battery pack costs. Economies of scale are accounted for separately for each cost fraction.

Keywords: battery costs; battery cost model; cobalt; supply risk; Li-ion; lithium-ion; economies of scale; electric vehicles (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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