Yep all I read is how the cost will come down eventually for Li below NiMH. I think it will be longer than most analyst are predicting though simply based on the huge demand that will have to be met. Takes a long time to go from producing batteries for 100 cars a year to 5 million cars a year.
This would make a very interesting market study. The are a lot of complex situations involved that take the pricing out of a simplified Li battery market only assessment. The Li players want an EV market as badly as GM and the EV enthusiasts. This is HUGE for them. They cannot price the batteries too high to risk making the vehicle price impractical. The major auto manufacturers are huge customers and would create markets that do not currently exist. I expect A123 and LG to be asking for long term battery contracts with minimum purcahsing requirements. In return, you can be sure GM is hammering them on price and their production commitments. The carmakers and battery companies really NEED each other in this process and until the EV is an established market segment and the battery companies are established, I don't think simple supply/demand economics will be an overriding factor.
There is a big advantage for GM to be leading the curve here. Other major automotive manufacturers that wait until the market is established will be more at the battery producers' mercy. Of course they could create their own battery production or technological developments can skew this outcome, but GM still has those options later.
