Electric Vehicle Battery Packs See Biggest Price Drop Since 2017
- Overcapacity, low metal prices have contributed to the decline
- Uncertainty over future pricing due to geopolitics and tariffs
A worker installs a stack of lithium-ion batteries onto a battery pack for an electric vehicle in Kurashiki, Japan.
Photographer: Kiyoshi Ota/BloombergThe average price of lithium-ion battery packs has fallen the most in seven years, according to a BloombergNEF survey, in a development likely to accelerate price parity between electric vehicles and gasoline-powered cars.
The cost of battery packs has dropped 20% to $115 per kilowatt-hour (kWh) in 2024, according to BNEF’s annual battery price survey. An overcapacity in cell production, lower metal and component prices and the continued shift to using cheaper lithium iron phosphate batteries drove the decline, the survey said. The study analyzed 343 data points from a range of applications including electric cars, buses and commercial vehicles.