Battery Maker Says U.S. EV, Hybrid Sales Should Reach 100,000 in 3 to 5 Years

Battery Maker Says U.S. EV, Hybrid Sales Should Reach 100,000 in 3 to 5 Years

Annual U.S. sales of electric vehicles and plug-in hybrids could rise to as many as 100,000 in three to five years, according to the chief executive of battery maker Boston-Power.

The company already produces lithium-ion batteries for laptop computers, including Hewlett-Packard, and has a contract to supply batteries for an all-electric version of the Saab 9-3.

Christina Lampe-Onnerud told Automotive News (subscription required) she thinks EV sales in the U.S. will pick up once the cost of a battery pack falls to about $500 per kilowatt-hour. She hinted that suppliers will reach that price point soon (in truth, some suppliers have already crossed that price point).

"The market is taking off faster than the analysts realize," Lampe-Onnerud said in an interview. "I think the industry grossly underestimates demand."

Lampe-Onnerud said Boston-Power, which has a factory in Taiwan and will likely soon announce a second plant in China, has developed a battery that will last the life of the vehicle it powers.

If true, that would be a major selling point, since the battery pack alone accounts for about one-third of an EV's cost.

Scott Doggett:  is an AutoObserver.com Associate Editor.