Hyundai expects battery prices to level off by 2020
The Korean automaker says supply constraints will eventually put an end to years of falling battery prices.
Khodrocar - Hyundai has issued a bold prediction that battery prices will soon hit a floor after years of steady declines.
"Not a single ingredient is going in a positive direction in terms of pricing," the company's head of green car projects, Lee Ki-sang, recently told media, as quoted by Reuters. "So far battery prices have been declining at a rapid pace, but the pace will moderate significantly or maintain the status quo by 2020."
Tesla's growth has been aligned with lithium-ion battery prices since the Roadster first entered the market in 2008. At the time, high battery costs were offset by the sports car's six-figure price tag. As prices continued to fall, the company eventually shifted downmarket to the luxury segment with the $70,000 Model S and now the mainstream market served by the forthcoming Model 3.
Tesla has already secured long-term supply contracts for raw materials used in its lithium-ion batteries, apparently preparing for potential volatility as the Gigafactory becomes the biggest battery factory in the world.
Hyundai is presumably hoping its executive is right, as the company has focused on hydrogen fuel-cell vehicles and hybrids alongside its traditional powertrains. Like Toyota, Hyundai is now hoping for a breakthrough in solid-state battery technology.
The Korean automaker is not completely turning its back on electric vehicles, recently confirming an electric crossover among five new models to debut next year. The company may not have a long-range model ready until 2021, however.
Source: LeftLane News