Batteries

Batteries have been the limiting factor in the design, performance and cost of plug‐in hybrids and
electric vehicles (Anderman 2007). Plug‐in hybrid electric vehicle and battery electric vehicle
designers have become more optimistic in recent years, given improvements in the performance
and the longevity of lithium. However, the cost of such batteries remains too high, casting
uncertainty on their success in the market (Axsen 2009). While plug‐in hybrids are expected to enter
a commercialization trial period around 2011, at present there are no cells, modules, or packs for
plug‐in hybrid electric vehicles or battery electric vehicles available in the market.   Given the high
costs of lithium batteries, there are considerable efforts going into the design of battery
manufacturing. Basic battery chemistry research is an expensive and ongoing effort in battery
companies, federal energy labs, and universities. Additionally, automobile manufacturers are testing
and redesigning batteries for vehicles. Despite such broad existing and emerging research programs
on batteries, there are significant research opportunities for automotive traction batteries where
state funding can play a decisive and innovative role, particularly in integrating the use of traction
batteries across the automotive and energy sectors, widening the market, and creating new values
for California vehicle users and ratepayers. The following are the most promising opportunities in
which the State might invest:

Second Life Applications

Although vehicle batteries are “spent” when they drop to 70‐80 percent of their power capabilities,
such batteries will have significant life in other applications. It may be possible to repurpose spent
vehicle batteries in second life applications, stretching their value and extending their life. In
particular, utilities must develop electricity storage capabilities for intermittent renewables,
particularly nighttime wind power, and find ways to offset added capacity needs for increasing peak
power needs due to growing air‐conditioning loads. The utilities may find value for repurposed spent
vehicle batteries as storage devices for nighttime power from renewables and delivery devices for
peak needs, especially if such devices help to avoid building new power plants.   Complementary
Applications Vehicle batteries have specific design criteria and control strategies for recharging and
use depending on their application. However, there may be other complementary applications with
similar designs demands that could expand the market and thus push down costs. There has been
previous research in this area on nickel‐metal‐hydride (NiMH) and lead acid batteries (Cready 2003).
Such analysis should be updated to include lithium chemistries, details of the design specifications
for each application, and an assessment of the value relative to lithium battery costs.