Evelina Stoikou, energy storage senior associate at BNEF and lead author of the report, said: “It is another year where battery prices closely followed raw material prices. In the many years that we’ve been doing this survey, falling prices have been driven by scale learnings and technological innovation, but that dynamic has changed.
Given this, BNEF expects average battery pack prices to drop again next year, reaching $133/kWh (in real 2023 dollars). Technological innovation and manufacturing improvement should drive further declines in battery pack prices in the coming years, to $113/kWh in 2025 and $80/kWh in 2030.
BloombergNEF (BNEF) has noticed that raw material and battery component prices have been rising steadily since it began tracking the market in 2010, aided by soaring inflation, and this has now led to the first ever increase in lithium-ion battery pack prices over that time period. Courtesy of NREL.
The account requires an annual contract and will renew after one year to the regular list price. The cost of lithium-ion batteries per kWh decreased by 14 percent between 2022 and 2023. Lithium-ion battery price was about 139 U.S. dollars per kWh in 2023.
The lithium-ion battery is the leading choice for battery manufacturers in the market. There is a supply shortage negatively impacting battery materials, especially lithium, leading to the increasing cost. In 2022 compared to the previous year, there was a 7 percent price increase of lithium-ion battery packs.
On a regional basis, battery pack prices were cheapest in China, at $127/kWh. Packs in the US and Europe were 24 percent and 33 percent higher, respectively. Higher prices reflect the relative immaturity of these markets, the higher production costs, the diverse range of applications and battery imports.