- The industry price of lithium-ion battery packs has seen its most significant drop since 2017, with prices dropping 20% year on year as of the end of 2024.
- The average lithium-ion battery pack price has been calculated across various sizes and applications of batteries, and now stands at $115 per kWh, according to new research undertaken by BloombergNEF. Looking more specifically at battery applications within BEVs, that average price drops further, to $97 per kWh.
- These findings corroborate earlier predictions from Goldman Sachs that EV battery cost would reach around $111 per kWh by the end of 2024.
Will cheaper batteries lead to cheaper EVs?
The report outlined several factors that were behind the drop in price of battery units. This included a drop in the price of raw battery materials, and increasing economies of scale as EV demand continues to grow. These were both factors outlined by Goldman Sachs’ prediction earlier this year, but BloombergNEF also noted that cell manufacturing currently has overcapacity – that is, battery factories have extra capacity to produce which isn’t being utilised. Additionally, whilst EV sales continue to grow, the global growth has been slower than predicted, also helping to lower these battery prices.
Evelina Stoikou, the Lead Author of BloombergNEF’s new report, added:
“The price drop for battery cells this year was greater compared with that seen in battery metal prices, indicating that margins for battery manufacturers are being squeezed. Smaller manufacturers face particular pressure to lower cell prices to fight for market share.”
With battery pack prices expected to continue dropping in 2025 – by $3 per kWh, according to BloombergNEF, the purchase cost of EVs will continue to become more accessible and affordable – allowing yet more electric cars to achieve price parity with fossil fuelled-counterparts. Further into 2026, other research from Goldman Sachs predicted that this price would drop further to $80 per kWh.
