BNEF: Lithium-ion battery pack prices drop to record low of $115/kWh

Marija Maisch | Source: Energy Storage | Posted 12/12/2024

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Battery prices continue to tumble on the back of lower metal costs and increased scale, squeezing margins for manufacturers. Further price declines are expected over the next decade.

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Battery prices are experiencing a significant decline due to lower metal costs and increased scale, resulting in squeezed margins for manufacturers. Analysts predict that prices will continue to drop over the next decade, with lithium-ion battery pack prices reaching a record low of $115/kWh in 2023, marking the most significant annual decrease since 2017.

Factors contributing to this decline include cell manufacturing overcapacity, economies of scale, lower metal and component prices, the adoption of lower-cost lithium-iron-phosphate (LFP) batteries, and a slowdown in electric vehicle sales growth. The industry is facing challenges with overcapacity, as global battery-cell manufacturing capacity exceeds demand, putting pressure on manufacturers to lower prices and compete for market share.

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Source Link: https://www.ess-news.com/2024/12/11/bnef-lithium-ion-battery-pack-prices-drop-to-record-low-of-115-kwh/

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BNEF: Lithium-ion battery pack prices drop to record low of $115/kWh

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