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Battery Prices Are Falling Again as Raw Material Costs Drop

Evelina Stoikou of Bloomberg reports on how battery prices for EVs are dropping.

The C3 Take
  • Material costs for EV batteries, which climbed significantly in 2022, have dropped in 2023.
  • New discoveries of lithium deposits and increased production among the supply chain have been one reason for these drops.
  • So too has reduced demand, as consumers slowed down the purchasing of EVs due to high borrowing costs and economic uncertainty.
  • While it is good news that raw material costs have gone down, there is still much work to be done for EVs to reach parity with internal combustion engines. Increased domestic mining and processing can help.

“The big question, as always, is what happens next. BNEF’s energy storage team expects prices to closely follow the trajectory of raw material prices. We’re projecting pack costs will fall to $133/kWh next year in real 2023 terms. In the long-term, based on the same learning rate as the previous year, battery pack prices are expected to fall below $100/kWh in 2027.”

Read the full article here.

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.

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