A cost estimation model to assess the feasibility of Li-Ion battery development based on targeted cost by market approach

Abstract

Sebelas Maret University (UNS) as a member of a consortium team for developing national electric vehicle, is developing a lithium battery for energy storage in electric vehicle (EV). Currently, the technology is in the technology development phase for commercialized under the university spin off scheme. In the technology development phase, according to the Goldsmith commercialization model, price identification should be studied before proceeding to the next stage of commercialization. Therefore, this study develops a cost estimation model to assess the feasibility of developed product based on the suitability of the targeted cost by market with the estimated cost. Research approaches to develop the model is parametric method based on activity-based costing. This approach is made to enhance accuracy of the cost estimation. By providing a numerical example into the model, this study can predict the cost of lithium ion battery cell (30Ah). The feasibility assessment carried out by calculating the targeted cost from desire profit and targeted price of market. The targeted cost is calculated as the cut off value to assess the feasibility of the developed product. The developed product feasible, if the estimated cost is equal or less than the targeted cost.

A cost accounting method of the Li-ion battery energy storage system for frequency regulation considering the effect of life degradation

“…According to different estimated operating life T LC of the Li-ion ESS under different dead bands, the average cost C A can be calculated according to (9) and (10).…”

“…Real-time price of energy storage market should be considered for cost calculation. The current market price of the Li-ion ESS is 2500-4500 (yuan / kWh), which has gone down by 60% compared to 2010 [8,9]. Taking primary frequency regulation as an example, references [10,11] analyzed the model combining wind power and energy storage, and proposed an ESS's control strategy to reduce wind curtailment and to participate in primary frequency regulation.…”

A Cost Estimation Application for Determining Feasib i lity Assessment of Li - Ion Battery in Mini Plant Scale

“…In addition, it said that in the technology development phase, according to the Goldsmith commercialization model, price identification should be studied before proceeding to the next stage of commercialization [14]. Therefore, previous study develops a cost estimation model to assess the feasibility of developed product based on the suitability of the targeted cost by market with the estimated cost, it approaches to develop the model is parametric method based on activity-based costing and made to enhance accuracy of the cost estimation [14].…”

“…In addition, it said that in the technology development phase, according to the Goldsmith commercialization model, price identification should be studied before proceeding to the next stage of commercialization [14]. Therefore, previous study develops a cost estimation model to assess the feasibility of developed product based on the suitability of the targeted cost by market with the estimated cost, it approaches to develop the model is parametric method based on activity-based costing and made to enhance accuracy of the cost estimation [14]. By providing a numerical example into the model, it can predict the cost of lithium ion battery cell (30Ah) and the feasibility assessment carried out by calculating the targeted cost from desire profit and targeted price of market, which the targeted cost is calculated as the cut off value to assess the feasibility of the developed product and the developed product feasible, if the estimated cost is equal or less than the targeted cost [14].…”

“…This paper proposes the development of application based on the model have been developed [14] to calculate the estimated cost needed in production, since the cost estimation model is quite difficult for common people. The application will be built in Microsoft Excel.…”