The price of lithium-ion battery packs has experienced a significant drop of 14% in 2023, reaching a record low of USD 139 (EUR 127) per kWh, as revealed in a new report by BloombergNEF (BNEF) released on Monday. This marks a reversal from the unprecedented rise observed in 2022 and can be attributed to decreases in raw material and component prices, expanded production capacity throughout the battery value chain, and a more moderate demand growth compared to industry expectations.
BNEF forecasts a continued expansion of battery demand, with a 53% year-on-year increase to 950 GWh in 2023 across electric vehicles and stationary energy storage. The report highlights that China boasts the lowest average battery pack prices at USD 126 per kWh, while the US and Europe exhibit prices 11% and 20% higher, respectively. Specifically for battery electric vehicle packs, prices stand at USD 128 per kWh.
Looking ahead, BNEF anticipates further declines in average battery pack prices, projecting them to reach USD 133 per kWh in real 2023 dollars next year. The forecast extends to USD 113 per kWh in 2025 and a notable decrease to USD 80 per kWh in 2030.
Yayoi Sekine, Head of Energy Storage at BNEF, emphasizes that regional complexities may emerge due to localization efforts in the US and Europe, adding an additional layer to how battery prices evolve in the coming years.
