> But lithium ion battery costs will keep falling
I question whether increased demand for grid scale batteries will create so much demand that lithium won't drop significantly any time soon.
I certainly hope i'm wrong.
I question whether increased demand for grid scale batteries will create so much demand that lithium won't drop significantly any time soon.
I certainly hope i'm wrong.
Solar panels could be a comparison. Demand has been growing exponentially but this has actually pushed prices down because this demand drive the learning curve.
In general, I wonder how much do we really know when we talk about cause and effect in economics. We see prices going down. We attribute it to something. But without experiments, how can we be sure?
A small part of the price declines is due to subsidies from the Chinese government but I don't believe it's the best explanation for the 97% price drop.
But if you can answer the question "how much would batteries go up in price next year if China removed subsidies", I'd genuinely like to know the answer to that because it is important.
One risk is a war between the US and China, regardless of the subsidy question. So we should get good at domestic alternatives like compressed air and pumped hydro, and work towards our own manufacturing of batteries.