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Consistency and robustness of forecasting for emerging technologies: The case of Li-ion batteries for electric vehicles

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  • Sakti, Apurba
  • Azevedo, Inês M.L.
  • Fuchs, Erica R.H.
  • Michalek, Jeremy J.
  • Gallagher, Kevin G.
  • Whitacre, Jay F.

Abstract

There are a large number of accounts about rapidly declining costs of batteries with potentially transformative effects, but these accounts often are not based on detailed design and technical information. Using a method ideally suited for that purpose, we find that when experts are free to assume any battery pack design, a majority of the cost estimates are consistent with the ranges reported in the literature, although the range is notably large. However, we also find that 55% of relevant experts’ component-level cost projections are inconsistent with their total pack-level projections, and 55% of relevant experts’ elicited cost projections are inconsistent with the cost projections generated by putting their design- and process-level assumptions into our process-based cost model (PBCM). These results suggest a need for better understanding of the technical assumptions driving popular consensus regarding future costs. Approaches focusing on technological details first, followed by non-aggregated and systemic cost estimates while keeping the experts aware of any discrepancies, should they arise, may result in more accurate forecasts.

Suggested Citation

  • Sakti, Apurba & Azevedo, Inês M.L. & Fuchs, Erica R.H. & Michalek, Jeremy J. & Gallagher, Kevin G. & Whitacre, Jay F., 2017. "Consistency and robustness of forecasting for emerging technologies: The case of Li-ion batteries for electric vehicles," Energy Policy, Elsevier, vol. 106(C), pages 415-426.
    • Handle: RePEc:eee:enepol:v:106:y:2017:i:c:p:415-426
    DOI: 10.1016/j.enpol.2017.03.063
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    References listed on IDEAS

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    1. Marc Wentker & Matthew Greenwood & Jens Leker, 2019. "A Bottom-Up Approach to Lithium-Ion Battery Cost Modeling with a Focus on Cathode Active Materials," Energies, MDPI, vol. 12(3), pages 1-18, February.
    2. Duffner, Fabian & Mauler, Lukas & Wentker, Marc & Leker, Jens & Winter, Martin, 2021. "Large-scale automotive battery cell manufacturing: Analyzing strategic and operational effects on manufacturing costs," International Journal of Production Economics, Elsevier, vol. 232(C).
    3. Whiston, Michael M. & Lima Azevedo, Inês M. & Litster, Shawn & Samaras, Constantine & Whitefoot, Kate S. & Whitacre, Jay F., 2021. "Paths to market for stationary solid oxide fuel cells: Expert elicitation and a cost of electricity model," Applied Energy, Elsevier, vol. 304(C).
    4. Xiaohong Wang & Shixiang Li & Lizhi Wang & Yaning Sun & Zhongxing Wang, 2020. "Degradation and Dependence Analysis of a Lithium-Ion Battery Pack in the Unbalanced State," Energies, MDPI, vol. 13(22), pages 1-25, November.
    5. Duffner, F. & Wentker, M. & Greenwood, M. & Leker, J., 2020. "Battery cost modeling: A review and directions for future research," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    6. Yang, Zaoli & Zhang, Weijian & Yuan, Fei & Islam, Nazrul, 2021. "Measuring topic network centrality for identifying technology and technological development in online communities," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    7. Doremus, Jacqueline & Helfand, Gloria & Liu, Changzheng & Donahue, Marie & Kahan, Ari & Shelby, Michael, 2019. "Simpler is better: Predicting consumer vehicle purchases in the short run," Energy Policy, Elsevier, vol. 129(C), pages 1404-1415.

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