Nissan’s Lithium-ion Battery Costs Less Than $370 per kilowatt-hour

Nissan’s Lithium-ion Battery Costs Less Than $370 per kilowatt-hour

The leaf electric cars by Nissan Motor Co. will be soon come in market, which aim to cut the cost of the vehicle's lithium-ion battery pack to less than $370 per kilowatt-hour to make a profit from the model. The target is compared with the Japanese government's industry wide estimate of about 150,000 yen ($1,600) per kilowatt-hour.

The partnership of Nissan, NEC Corp. and NEC Tokin Corp. is making the battery for Nissan and the price depends on factors including the scale of production as well as resale value for salvaging. "Our target is a lot tougher than $370" said Masahiko Otsuka, President of Automotive Energy Supply Corp.

The lithium-ion battery is the most costly component of the Leaf, which will sell for $32,780 in the U. S. and 3.76 million yen in Japan before government enticements for consumers. Nissan, which doesn't sell a mass-market gasoline-electric hybrid car, is now launching the Leaf in reaction to government emissions rules and potentially elevated oil prices.

Currently the cost of Nissan's battery is about 1.05 million yen, or $472 per kilowatt-hour and other components cost about 1.4 million yen, labor and other indirect costs must be contained to 35 % of the sticker price to secure a profit.

Nissan's Chief Executive Officer, Carlos Ghosn said this week that he plans to have capacity to build 500,000 electric cars a year by 2012. He estimates demand will reach 10 percent of the global car market by 2020.