BloombergNEF’s annual battery price survey finds a 14% drop from 2022 to 2023 New York, November 27, 2023 – Following unprecedented price increases in 2022, battery prices are falling again this year. The price of lithium-ion battery packs has dropped 14% to a record low of $139/kWh, according to analysis by research provider BloombergNEF (BNEF).
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.
Turmoil in battery metal markets led the cost of Li-ion battery packs to increase for the first time in 2022, with prices rising to 7% higher than in 2021. However, the price of all key battery metals dropped during 2023, with cobalt, graphite and manganese prices falling to lower than their 2015-2020 average by the end of 2023.
Miners and metals traders surveyed expect prices for key battery metals like lithium, nickel and cobalt to ease further in 2024. 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. Yayoi Sekine, head of energy storage at BNEF, said: “Battery prices have been on a rollercoaster over the past two years.
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.