Wednesday, June 12, 2024 One of the key attractions of electrification in any industry is the reduction in operating costs offered by electric machines. This is particularly significant in the construction, agriculture, and mining (CAM) sectors. Large machines with high uptimes, such as mining haul trucks, can consume millions of dollars in fuel over their lifetime, making the potential total cost of ownership savings substantial.
However, despite this advantage, IDTechEx’s discussions with CAM machine customers reveal that the upfront cost of electric alternatives remains prohibitive. Many customers prefer to stick with cheaper internal combustion machines, even though the lifetime ownership cost is higher. The primary factor driving up the cost of electric CAM machines is the batteries they use.
While battery prices have decreased from the US$500-1,000/kWh range to US$250-300/kWh, they still add significant costs. For example, a mini-excavator might use a 70kWh battery, costing about US$21,000, which is significantly more than the 40-50hp small diesel engine it would replace, not to mention the additional cost of the motor and power electronics, though these are less expensive than the battery. There is hope, however.
Reports from early 2024 suggest that CATL battery prices could be significantly reduced. The automotive industry already benefits from higher volumes and lower prices, typically in the US$100-150/kWh range for lithium iron phosphate (LFP) batteries. CATL’s.
