Battery pack prices continue plummeting towards price parity with ICE vehicles

If you drove an EV back in 2010, it’s likely that you paid an average of about $1,100 per kilowatt-hour for your battery pack. By the end of 2019 this figure had fallen a full 87%, to $156 per kWh. According to BloombergNEF’s 2019 Battery Price Survey, the average price by 2023 will be approximately $100/kWh, and below that by the following year, when aggregate demand is expected to exceed 2 TWh. At this point, EVs are expected to finally reach price parity with combustion-engine creations. These dramatic cost reductions can be chalked up to a multitude of factors, including the steady rise of high-energy-density cathodes, growing order sizes, and the overall expansion of EV sales.

As battery prices fall, more companies and individuals are going electric. This is good for more than our collective wallets, as wider commercialization leads to helpful differentiation in cell specifications. For instance, a driver concerned with a standard commute may focus solely on the cost efficiency aspect, whereas high-end or commercial buyers may lean more toward facets like cycle life. Falling prices in the new Roaring 20s will stem from innovative pack designs, evolution of supply chains, and diminished manufacturing expenses. As demand for EVs rises in Europe and China, companies will cut transport and import costs by building manufacturing plants within the demand regions.

Survey author James Frith, a Senior Energy Storage Analyst for BNEF, said, “According to our forecasts, by 2030 the battery market will be worth $116 billion annually, and this doesn’t include investment in the supply chain. However, as cell and pack prices are falling, purchasers will get more value for their money than they do today.” As automakers begin to home in on their own renditions of EV models featuring tailored thermal management systems, battery pack designs will be standardized, simplified, and streamlined at both the design and economic levels, making for reduced requirements in module housing and, in turn, reduced environmental impact. Bloomberg NEF envisions prices falling to $61/kWh by 2030, but this may depend on the development of emerging technologies such as silicon and lithium anodes, new cathode materials and solid-state cells.

Sources: BloombergNEF

  • Vincent Wolf

    Beginning of the end of the internal combustion engine. R.I.P.

    • pyrophilia

      nah, don’t rest in piece burn in hell!

  • Tomáš Čermák

    Very good news.

  • Musa Manyando

    Great news for an average person on the street to afford an electric vehicle. Even a motorcycle.

  • mb48

    Now sell me a replacement LEAF battery for $3000 for a 30 KW.

  • Dino Maselli

    Yes this is good news. Batteries will get better. Tesla is coming up with new battery. Greater capacity per size, and much more rapid charging rates. Therefore the autonomy will skyrocket. They already have a battery that will give an autonomy of 1000 KM.

    Also the best way to promote quicker development of technology and the number of manufacturers going to EV, is to invest in the companies. For example Tesla. Tesla stock was at about $175 per share a couple of years ago. It is now at $750 due to the new models, S, 3, X, Y, Roadster, pickup, Tractor trailer,Buses, Tesla Power Pack, and Tesla Solar Roof tiles….Also battery plants and car plants are being constructed in China and Europe… there is a great momentum behind Tesla..

    Anyone who would have bought 130 shares of Tesla stock at $150 2 years AGO would have paid for the Model S from the profit of the shares . Analysts are being very bullish on stock and predicting that it will go to US$7500.00 per share by 2024. If someone wants a free EV vehicle from Tesla….They should invest in Tesla today…..and will be able to pay for a Tesla just from the profits from the gain of share price. By buying 130 shares today of Tesla stock would give enough gain from the stock in one year to buy a Model S..

    This is what I did 4 years ago…. and today the profits of the stock has paid for my 2015 model S and profits left over to reinvest in the stock. However now that the stock is gaining at exponential rate and therefore profits from stock can pay for a model S in 1 Year…Plus you save on Gas & maintenance and get to ride in a nice car.