Electric vehicle battery cost drops to $ 132 per kWh, but it could go up from there – .

Electric vehicle battery cost drops to $ 132 per kWh, but it could go up from there – .

The cost of electric vehicle battery packs has fallen to $ 132 per kWh – continuing decades of cost improvement. However, it could increase over the next year as rising material prices catch up with additional cost improvements.

The price per kWh is the metric used to track the price of batteries. It can be used to talk about the cost of battery packs or battery cells.

For example, if Tesla reached a cost per kWh of $ 150 for its Model S battery pack, that would mean that the battery pack costs $ 15,000 since it has a capacity of 100 kWh.

In the automotive industry, it is generally accepted that $ 100 per kWh for battery packs is the price needed for electric vehicles to be competitive with gasoline vehicles.

Of course, it depends on the type of vehicle, as you can competitively price electric vehicles in many segments with higher battery costs.

For example, the cost of battery packs for electric buses fell to $ 100 per kWh last year.

The average cost of electric vehicle batteries has declined steadily over the past year based on BloombergNEF’s annual battery price survey.

In an updated version of the survey, BloombergNEF reported that it now averages $ 132 per kWh:

“Lithium-ion battery prices, which exceeded $ 1,200 per kilowatt hour in 2010, fell 89% in real terms to $ 132 / kWh in 2021. This is a decrease of 6% from $ 140 / kWh in 2020. Continued cost reductions bode well for the future of electric vehicles, which rely on lithium-ion technology.

That’s down from $ 137 per kWh last year and, therefore, another small but good incremental improvement. However, these constant cost improvements could end in 2022 due to rising material prices.

BloombergNEF reports:

“However, rising commodity prices mean that in the short term, average pack prices could reach $ 135 / kWh in 2022 in nominal terms. In the absence of other improvements that can mitigate this impact, it could mean that the point at which prices fall below $ 100 / kWh could be pushed back for two years. This would impact the affordability of electric vehicles or manufacturers’ margins and could hurt the economics of energy storage projects.

The prices of metals important for battery production have increased significantly in 2021 and this is starting to put pressure on battery costs.

For example, the cost of nickel has increased 24% so far this year:

The increase in demand exceeds the new production coming online, which takes a long time to deploy as mining is a capital and time intensive industry.

FTC: We use automatic affiliate links which generate income. Suite.

Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.


Please enter your comment!
Please enter your name here