Lithium Ion Vs Lead Acid Cost Analysis

Lithium-ion vs Lead-Acid cost analysis

lithium-ion factory oem

Why Lithium?

Compared with traditional battery technology, lithium-ion batteries charge faster, last longer, and have a higher power density for more battery life in a lighter package. When you know a little about how they work, they can work that much better for you.

We take the example of a solar installation for a standalone building (Self Sufficient Home). The storage capacity for the battery is 50KWh.

The application need is summarized in the above table:

Specifications Value
Stored Energy 50KWh
Cycling frequency 1 x discharge/charge per day
Average ambient temperature 23°C
Expected Lifespan 2000 Cycles, or 5.5 years

The costs of delivery and installation are calculated on a volume ratio of 6:1 for a Lithium system compared to a lead-acid system. This assessment is based on the fact that the lithium-ion has an energy density of 3.5 times Lead-Acid and a discharge rate of 100% compared to 50% for AGM batteries.

Based on the estimated lifetime of the system, the lead-acid battery solution-based must be replaced 3 times. Lithium-Ion solution-based is not replaced during operation (2000 cycles are expected from the battery at 100% DoD cycles)

The cost per cycle, measured in € / kWh / Cycle, is the key figure to understand the business model. To calculate it, we consider the sum of the cost of batteries + transportation and installation costs (multiplied by the number of times the battery is replaced during its lifetime). The sum of these costs is divided by the net consumption of the system (50kWh per cycle, 365 cycles per year, 5.2 years of use). The result is summarized in the table below:

Lead-Acid AGM Lithium-Ion
Installed capacity 100 KWh 50 KWh
Usable capacity 50 KWh 50 KWh
Lifespan 500 cycles at 50% DOD 2000 cycles at 100% DOD
Battery cost 15 000€ (150€/KWh) (x 4) 35 000€ (700€/KWh) (one-shot)
Installation cost 1K€ (x 4) 1K€ (one-shot)
Transportation cost 28€ per KWh (x 4) 10€ per KWh (one-shot)
TOTAL COST 76 200€ 36 500€
Cost per KWh per cycle 0.76€ / kWh / cycle (+95% vs Li-Ion) 0.39€ / kWh / cycle

We note that despite the higher facial cost of Lithium technology, the cost per stored and supplied kWh remains lower than for Lead-Acid technology. The reason is related to the intrinsic qualities of lithium-ion batteries but also linked to lower transportation costs.

This case is valid for any type of application requiring a deep discharge cycle. EV traction or autonomous systems match the same criteria. On the other hand, for UPS systems or back-up batteries, the above model can not be applied because the discharge cycles are by definition random for such systems.

Lithium is the Lightweight Champ BSLBATT® Lithium-ion battery provides more energy than lead-acid batteries and are typically half the mass, reducing concerns about battery weight. Compared to other battery chemistries, lithium provides the same or greater energy at less than half the weight and size. This means more flexibility and easier installation!

What is the best way to store lithium-ion batteries?

Lithium-ion batteries can charge for months. The best way is to store a lithium-ion battery with some or all of the charge. Occasionally, a low-charge lithium-ion battery will be stored for a long time (many months) and its voltage will slowly drop to the level it is built into the safety mechanism to allow it to charge again.If the battery needs to be stored for months。

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