Lithium vs. Lead Acid Batteries: A 10-Year Cost
Data source: DOE 2023 Energy Storage Market Report Total Cost of Ownership Model (NREL Methodology) Case Study: 10kW/20kWh
The 2020 Cost and Performance Assessment provided installed costs for six energy storage technologies: lithium-ion (Li-ion) batteries, lead-acid batteries, vanadium redox flow batteries, pumped storage hydro, compressed-air energy storage, and hydrogen energy storage.
Lead batteries are very well established both for automotive and industrial applications and have been successfully applied for utility energy storage but there are a range of competing technologies including Li-ion, sodium-sulfur and flow batteries that are used for energy storage.
Lead-acid batteries are a mature technology, especially in the context of Starting, Lighting Ignition batteries used in automobiles. Hence, a 15 percent cost reduction is assumed as this technology gains penetration in the energy storage space. Table 4.2. Ratio of year 2018 to 2025 costs. (Source: DNV GL 2016)
Lead-acid hybrid systems, such as the one produced by the manufacturer Ultrabattery, were not considered in this work because of their lower specific energy leading to higher unit energy costs for their 4-hour application. For vanadium redox flow batteries, with two exceptions the cost was in a tight range of $357–$584/kWh.
In summary, the total cost of ownership per usable kWh is about 2.8 times cheaper for a lithium-based solution than for a lead acid solution. We note that despite the higher facial cost of Lithium technology, the cost per stored and supplied kWh remains much lower than for Lead-Acid technology.
• On an annualized basis, Li-ion has the lowest total annualized $/kWh value of any of the battery energy storage technologies at $74/kWh, and ultracapacitors offer the lowest annualized $/kW value of the technologies included. An attempt was made to determine the cost breakdown among the various categories for PSH and CAES.
Data source: DOE 2023 Energy Storage Market Report Total Cost of Ownership Model (NREL Methodology) Case Study: 10kW/20kWh
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