The common worth of a lithium-ion battery pack for a light-duty EV has decreased 90% over the previous 15 years, the U.S. Division of Power (DOE) estimates.
In 2023, the DOE estimates pack costs averaged $139/kwh on a usable-energy foundation for manufacturing at scale, that means no less than 100,000 items per yr. That is nonetheless not fairly on the magical $100/kwh many analysts level to as the purpose at which EVs can obtain price parity with gasoline automobiles, but it surely’s down considerably from the $1,415/kwh (utilizing 2023 fixed {dollars}) common in 2008.
EV battery pack price, 2008-2023 (through U.S. Division of Power)
The steep decline is because of “enhancements in battery applied sciences and chemistries, in addition to enhancements in manufacturing and will increase in manufacturing quantity,” in response to the DOE. Manufacturing quantity specifically has elevated considerably since 2008, when the fashionable EV period was simply getting began with the launch of the Tesla Roadster, providing automakers economies of scale that did not exist at the moment.
EV battery costs have fallen considerably over the previous few years, albeit with some interruptions associated to the coronavirus pandemic and attendant supply-chain points. Costs dropped 13% in 2019, elevated in 2022, and commenced falling once more after that. Costs dropped 14% in 2023, Bloomberg New Power Finance reported on the time.
Evaluating 4680 vs. 2170 – Panasonic
On the expertise entrance, Tesla has touted large-format 4680 cells as the important thing to higher EV affordability, however the wager hasn’t paid off to date. In its annual shareholder assembly in June of this yr, CEO Elon Musk stated Tesla was nonetheless making an attempt to chop 4680 cell price, claiming the automaker’s personal cells price greater than these purchased from suppliers.
Tesla apart, battery prices are anticipated to proceed falling. Goldman Sachs revealed evaluation earlier this yr predicting price decreases equal to a 40% drop between 2023 and 2025. Battery price cuts might permit EVs to realize parity with internal-combustion autos as early as subsequent yr in some markets, in response to analysts.