Cost Comparison Over Time: Flow Batteries vs. Lithium-Ion Batteries
Current Status:
- Flow Batteries: The initial cost per kWh for flow batteries ranges from $200 to $500. However, they offer advantages in terms of longevity and scalability, with a long cycle life exceeding 10,000 cycles and often reaching over 20 years. Their operational efficiency ranges from 75% to 85%.
- Lithium-Ion Batteries: Lithium-ion batteries have an initial cost per kWh of $100 to $300, offering higher energy density and a cycle life of 1,000 to 5,000 cycles. They are highly efficient, with charging and discharging efficiencies of 90% to 95%. However, their costs have been decreasing over recent years.
Cost Trend:
Historically, lithium-ion batteries have been more cost-competitive for small-scale applications due to their lower initial costs and high efficiency. However, flow batteries are gaining ground for long-duration energy storage due to their scalability, long lifespan, and competitive cost per kWh when deployed at scale. As technology advances, the cost gap between these two types of batteries is expected to narrow further.
Future Projections:
- Flow Batteries: The U.S. Department of Energy has highlighted that with strategic investments in technology, the levelized cost of storage (LCOS) for flow batteries could decrease significantly. Currently, the LCOS is about $0.160/kWh but could potentially drop to as low as $0.052/kWh by 2030.
- Lithium-Ion Batteries: While lithium-ion batteries are expected to remain competitive in short-duration applications, their cost reductions are projected to be less dramatic compared to flow batteries. They are likely to remain a significant player but face challenges in long-duration storage due to resource constraints and scalability issues.
Over time, flow batteries are poised to become more cost-competitive with lithium-ion batteries, particularly in applications requiring long-duration energy storage. This shift is driven by technological advancements and economies of scale in larger installations.
Comparison Table:
| Feature | Flow Batteries | Lithium-Ion Batteries |
|---|---|---|
| Initial Cost per kWh | $200-$500 | $100-$300 |
| Cycle Life | Over 10,000 cycles | 1,000 to 5,000 cycles |
| Efficiency | 75%-85% | 90%-95% |
| Scalability | Highly scalable by adding electrolytes | Limited scalability due to component costs |
| LCOS Projection | Potential drop to $0.052/kWh by 2030 | Expected to remain competitive but less dramatic cost reduction |
This comparison highlights the competitive advantages of flow batteries in long-duration applications, while lithium-ion batteries maintain a strong position in short-duration and high-efficiency needs.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-per-kwh-of-flow-batteries-compare-to-lithium-ion-batteries-over-time/
