Lithium-ion battery prices, which account for 13% of the CEEPI, were affected by the global surge in inflation and general market volatility in 2022, despite innovation and cost reductions in battery packs. Substantial increases in the prices of lithium and nickel, two important inputs for EV batteries, were a big factor in soaring battery prices.
One option for bringing the zero emissions benefits of battery electric today without the lead time or cost of a new underground BEV is a battery conversion, where Sweden’s Epiroc has been leading the way.
Average selling prices of European manufacturers have stayed relatively unchanged in the first and second quarter of 2023. Battery prices did not escape inflation. The heaviest hit was mostly in 2022, and prices are expected to remain flat in 2023.
In 2021 and 2022 a barrage of factors pushed up prices of clean energy equipment. The cost of inputs, such as critical minerals, soared. Logistical problems prevented shipments from clearing ports or arriving to destination on time.
For instance, lithium-ion batteries are composed of battery cells (with cathode material) contained in battery modules within a battery pack. The share of cathode materials in battery costs was less than 5% in the middle of the last decade, but reached over 20% in 2021 and almost 40% in 2022.
Some key battery metals such as nickel, cobalt, molybdenum and lead are already well established on the LME. We've introduced new futures contracts to provide further hedging and trading opportunities for battery materials.