Medium price of a lithium-ion battery pack for a light EV has dropped 90% in the past 15 years, United States Department of Energy (DOE) estimate.
In 2023, DOE estimates package prices average $139/kwh on a usable energy basis to produce at scale, meaning at least 100,000 units per year. That’s still short of the magic $100/kWh that many analysts point to as the point at which electric vehicles can reach price parity with gasoline-powered vehicles, but it’s down significantly from the average $1,415/kWh (using constant 2023 dollars) in 2008.
EV battery pack costs, 2008-2023 (according to the US Department of Energy)
The sharp decline is due to “improvements in battery technology and chemistry, as well as improvements in manufacturing and increased production volumes,” according to the DOE. Production volumes in particular have increased significantly since 2008, when the modern EV era was just beginning with the introduction of Tesla carsgiving automakers economies of scale that did not exist at the time.
EV battery prices have dropped significantly over the past few years, despite some disruptions related to coronavirus pandemic and supply chain related issues. Prices down 13% in 2019increase in 2022 and start falling back Prices fell 14% by 2023, Bloomberg New Energy Finance reported at the time.
Compare 4680 vs 2170 – Panasonic
On the technology side, Tesla has touted 4680 large format cells is the key to increasing the affordability of electric vehicles, but so far, that bet has not paid off. During its annual shareholder meeting in June this year, CEO Elon Musk said Tesla was still trying to cut the cost of its 4680 cells, claiming that the automaker’s own cell prices were higher. buy from supplier.
Beyond Tesla, battery costs are expected to continue to fall. Goldman Sachs published analysis earlier this year predicting cost reductions equivalent to 40% reduction from 2023 to 2025. Cutting battery costs could allow EVs to achieve on par with internal combustion vehicles According to analysts, as early as next year in some markets.
