Lithium-Ion Battery Pack Prices Hit Record Low of $139/kWh
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
BloombergNEF reports that battery pack prices closely follow raw material costs. In 2023, battery packs for electric vehicles averaged $128 per kWh, while the cells alone cost $89 per kWh. Cells make up about 78% of the total pack cost.
Even in Greater China, the cost of an NCM811 battery pack is about $103/kWh. The price of battery metals will likely increase in the longer term; however, due to economy of scale and efficiency gains, the cost of manufacturing will be lowered.
Most industry forecasts place the global average between $85 and $100 per kWh, with some sources projecting even lower prices in high-volume markets. For example, battery packs in China now cost as little as $94 per kWh, while prices in the United States and Europe remain higher by 31% and 48% respectively.
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.
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