The cost of raw materials, particularly lithium carbonate, plays a significant role in the pricing of lithium-ion batteries. The recent decrease in lithium prices has been a major factor in lowering battery costs. As lithium is a key component in these batteries, fluctuations in its price directly impact the overall cost of battery production.
The most costly option seems to be solid-state batteries, because solid electrolytes are more expensive to produce. Specifically, solid-state batteries are projected to cost $80-90/ kWh by 2030, while the price of lithium batteries is expected to reach $60/kWh by the same time. Winner: Sodium-ion batteries And the winner is… Sodium-ion batteries!
Lithium-ion (Li-ion) batteries were not always a popular option. They used to be ruled out quickly due to their high cost. For a long time, lead-acid batteries dominated the energy storage systems (ESS) market. They were more reliable and cost-effective.
The price of lithium-ion batteries has been on a downward trend, reaching a record low of $139 per kWh in 2023 and continuing to decrease into 2024. The reduction in lithium prices, increased production capacity, and technological advancements have all contributed to this trend.
Solid-state batteries are the biggest competitor here. The i ncreased stability their solid electrolytes offer means that solid-state batteries can hold up to 50% more energy than their lithium-ion counterparts, while they’re expected to reach a whopping 80% charge within 12 minutes.
It also costs less to extract and purify. On top of that, sodium-ion cells can be made with ample metals such as iron and manganese. In contrast, lithium-ion batteries require cobalt, a metal with limited geological reserves that’s also the most expensive part of the battery, priced at approximately $28,500 per ton.