According to IEA’s latest report, the price of Lithium Iron Phosphate (LFP) batteries was heavily impacted by the surge in battery mineral prices over the past two years, primarily due to the increased cost of lithium, its critical mineral component.
Hong Kong and London, December 16, 2020 – Lithium-ion battery pack prices, which were above $1,100 per kilowatt-hour in 2010, have fallen 89% in real terms to $137/kWh in 2020. By 2023, average prices will be close to $100/kWh, according to the latest forecast from research company BloombergNEF (BNEF).
The average cost of a lithium-ion battery pack fell to $137 per kWh in 2020, according to a new industry survey from BloombergNEF. That's an inflation-adjusted decline of 13 percent since 2019. The latest figures continue the astonishing progress in battery technology over the last decade, with pack prices declining 88 percent since 2010.
BloombergNEF’s annual battery price survey finds prices fell 13% from 2019 Hong Kong and London, December 16, 2020 – Lithium-ion battery pack prices, which were above $1,100 per kilowatt-hour in 2010, have fallen 89% in real terms to $137/kWh in 2020.
Lithium iron phosphate – LFP – however plays as a cost-competitive alternative, contributing to the lowest reported cell prices of $80/kWh.” The path to achieving $101/kWh by 2023 looks clear, even if there will undoubtedly be hiccups, such as commodity price increases, along the way.
Lithium iron phosphate batteries officially surpassed ternary batteries in 2021 with 52% of installed capacity. Analysts estimate that its market share will exceed 60% in 2024.