Techno-economic analysis of lithium-ion battery price
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Executive Summary In this work we describe the development of cost and performance projections for utility-scale lithium-ion battery systems, with a focus on 4-hour
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Battery storage costs have evolved rapidly over the past several years, necessitating an update to storage cost projections used in long-term planning models and other activities. This work documents the development of these projections, which are based on recent publications of storage costs.
The projections are developed from an analysis of recent publications that include utility-scale storage costs. The suite of publications demonstrates wide variation in projected cost reductions for battery storage over time.
By expressing battery system costs in $/kWh, we are deviating from other power generation technologies such as combustion turbines or solar photovoltaic plants where capital costs are usually expressed as $/kW. We use the units of $/kWh because that is the most common way that battery system costs have been expressed in published material to date.
Battery cost projections for 4-hour lithium-ion systems, with values relative to 2024. The high, mid, and low cost projections developed in this work are shown as bold lines. Published projections are shown as gray lines. Figure values are included in the Appendix.