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

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.