Arshad Saleem

Free electric cars? - The curious case of battery prices in Europe

Blog Post created by Arshad Saleem Partner on 03-May-2017

Co-authored by Lukas Keller (Master Thesis cand. and Associate Energy Analyst Intern at InnoEnergy)

 

Where can you get the cheapest battery or ‘Energy Storage System (ESS)’ in Europe? If you have an interest in the battery market the answer should be no surprise. Yes, it is Tesla and their Powerwall. On their Norwegian website, Tesla is selling its flagship storage product, the Powerwall 2, for a price of about 5000 NOK/kWh, about 531 €/kWh (exchange rate May 2017). Considering the exchange rate, the Powerwall 2 prices are pretty much the same across Europe.

 

 

 

 

Recently, I checked on the EV market in Europe. The number of Electric Vehicle Models is increasing rapidly. When comparing car prices with the offered battery size of the car something interesting came out. Let’s take for example the Opel Ampera-e, the European version of GM’s Chevrolet Bolt which is already available for purchase in Norway.

 

The price for an Ampera–e with an XL battery of 60 kWh and a whopping range of 520 km is about 300000 NOK.

 

Now let’s take out our calculators and do a little math.

The Tesla Powerwall 2 price for 14 kWh is about 70.000 NOK, meaning 5000 NOK/kWh. This means the price for a 60 kWh Powerwall on this rate should be 300.000 NOK.

Wait, 300.000 NOK? That is exactly the price for the Opel Ampera-e car including its 60 kWh battery. This means when I buy the Opel Ampera-e, I pay the price of the installed battery and essentially get the car for free.

 

Well, getting a free electric car is one fun thing; but there is a serious side to this curious situation- even more serious and curious than that of the Mr. Benjamin Button. The ESS available today are highly overpriced and this price is not going to stay at this level for very long. It's only a matter of time when we will have battery prices in ESS at about 150 €/kWh, the price that already exists in EV batteries today. And when this happens, it will open up a completely new set of opportunities, business models and markets for ESS. The players that will be ready with their technologies are going to be the winners of this inbound disruption.

So take note exciting InnoEnergy storage startups, Ferroamp, Ambibox, Lancey… Are you ready for the opportunity?

 

Credits to the friends from CommUnity Post for reviewing this post

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