Battery prices are below $ 100 per kilowatt hour for the first time

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Last updated on December 8th, 2022 at 02:41 pm

The average market price is $ 137 per kilowatt-hour

Prices for lithium-ion batteries, which were above $ 1,100 per kilowatt-hour of capacity in 2010, have so far dropped 89% to $ 137 per kilowatt-hour. By 2023, average prices will be close to $ 100 per kilowatt-hour, according to research firm BloombergNEF.

lithium-ion batteries
lithium-ion batteries

Battery prices are below $ 100 per kilowatt-hour for the first time

Moreover, analysts have already recorded the first time when the price dropped below this mark. This was the price in China for batteries for electric buses. At the same time, the weighted average price for such batteries in China is slightly higher – $ 105 per kilowatt-hour. Batteries for electric vehicles average $ 126 per kilowatt-hour. The source clarifies that the cost of the battery is about 21% higher than the cost of individual batteries.

The battery accounts for a significant share of the cost of an electric vehicle, so breaking the $ 100 per kilowatt-hour mark is essential. It is estimated that by purchasing batteries at about this price, manufacturers will be able to sell electric vehicles to the mass market at the same price (and profit) as comparable internal combustion engine vehicles. Without any subsidies to drive the transition to electric vehicles.

This year the cost of batteries has decreased by 13% compared to last year. The decline was due to an increase in orders, increased sales of electric vehicles, and the introduction of new packaging options. New cathode compositions and lower manufacturing costs are expected to further drive down prices in the near future. Analysts estimate the gross profit margin of the leading battery manufacturers at 20%.

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