BloombergNEF says it has recorded a 14% decline in battery prices this year, mainly due to cheaper raw materials, following an unprecedented rise in 2022. BloombergNEF said in its latest annual study on lithium-ion batteries that the average price of battery packs has fallen this year to $139/kWh, or 14% less than the average of $161/kWh in 2022.
While the main cause of falling battery prices has historically been technological innovation, this year the price drop is mainly attributed to reduced raw material costs.
According to BloombergNEF’s annual lithium-ion battery price survey, average pack prices fell to $139 per kilowatt hour this year, a 14% drop from $161/kWh in 2022. 1 Have a confidential tip for our reporters? Get in Touch BloombergNEF breaks down the biggest annual drop in its lithium-ion battery price survey since 2018.
Battery prices are resuming a long-term trend of decline, following an unprecedented increase last year. According to BloombergNEF’s annual lithium-ion battery price survey, average pack prices fell to $139 per kilowatt hour this year, a 14% drop from $161/kWh in 2022. 1 Have a confidential tip for our reporters? Get in Touch
Technology advances that have allowed electric vehicle battery makers to increase energy density, combined with a drop in green metal prices, will push battery prices lower than previously expected, according to Goldman Sachs Research.
The price of lithium-ion battery cells declined by 97% in the last three decades. A battery with a capacity of one kilowatt-hour that cost $7500 in 1991 was just $181 in 2018. That’s 41 times less. What’s promising is that prices are still falling steeply: the cost halved between 2014 and 2018. A halving in only four years.