Canada-listed battery maker CellCube Energy Storage Systems Inc. said its technology costs could halve in four years, potentially boosting utilization of lithium-ion batteries.
Stefan Schauss, the company's President, said in a telephone interview from Toronto this month that the cost of its vanadium redox flow battery, which can discharge for 4 hours continuously, would drop to $150 per kilowatt-hour from $300. The price of an eight-hour battery will drop to $100 from $200, he said.
Utilities and renewable energy providers are increasingly looking to store intermittent wind and solar power to balance the flow of electricity to the grid and deploy it when demand peaks.To meet the cumulative surge in global energy storage demand to 942 gigawatts by 2040, according to Bloomberg NEF, it will require an investment of about $620 billion.
"The fixed energy storage market is at an inflection point," Schauss said. He added that users were increasingly attracted to products with longer storage times. Coupled with the reduced cost of liquid-stream batteries, "lithium batteries may struggle to compete."
According to Bloomberg NEF, lithium-ion batteries are still the preferred technology for utility-scale and post-mi storage.But Logan Goldiescot, an analyst at BNEF, said in a separate email that vanadium redox flow battery companies have promised to cut costs significantly compared with lithium-ion rivals.