Thanks to a variety of factors (mostly base economics), lithium-ion battery packs are at record low prices. After dropping 14%, they are down to $139/kWh vs 2022. Prices for key battery metals, especially lithium, have fallen sharply since January, due to significant growth in production capacity in all parts of the battery value chain, from raw materials and components to cells and battery packs.
The steep price drop and record low average price come on the heels of price increases in 2022 that had brought battery prices back to 2020 levels. 10 Years ago, battery packs (including cells) cost $780 per kwh. These figures represent an average across multiple battery end-uses.
Research by Blomberg and Goldman Sachs suggest that prices will drop further and reach $80 by 2030.
Source: Electrek: Read The Article
PSR Analysis: There has been a lot of talk about battery packs reaching $100 per kwh as a target and it looks as though this will be exceeded by 2030. This can only be good news for the prices of all EVs as battery costs are a significant contributor to the cost of any vehicle. VW and Tesla (to name just two companies) are already talking about $25k electric cars. PSR
Guy Youngs is Forecast & Adoption Lead at Power Systems Research
