EV battery prices have dropped about 90% in 15 years: data

New data shows that electric vehicle (EV) battery prices dropped substantially in the fifteen-year period running through last year, representing a reduction of around 90 percent total.

The U.S. Department of Energy (DOE) reported earlier this month that the average price for a lithium-ion EV battery dropped 90 percent between 2008 and 2023 for light-duty vehicles, based on the cost of usable energy. In 2023, EV battery prices were estimted to be about $139 per kWh on a usable-energy basis for production at scale of at least 100,000 units annually, compared to that of $1,415 per kWh in 2008.

The department points to improvements in battery technologies and chemistry make-ups, along with improvements in manufacturing and boosted production volume, as reasons for the substantial drop in price.

Credit: U.S. Department of Energy

The data for 2018 to 2023 came from the DOE’s Vehicle Technologies Office, citing the Argonne National Laboratory’s BatPac estimation tool for battery manufacturing costs. Other sources for years 2008 to 2017 include the Vehicle Technologies Office’s annual merit reviews on batteries and electrification, as well as the review of the U.S. Drive Partnership research program.

Bloomberg last year also reported a similar figure to that shared by the DOE, corroborating the roughly $139 per kWh of usable energy in 2022, with costs expected to drop to $128 per kWh in 2023.

According to data and estimates from Statista last year, a battery’s share of the total EV price is around 28 percent in 2024, though it’s expected to continue dropping to reach around 19 percent by 2030.

Projected battery costs as a share of large battery electric vehicle costs from 2016 to 2030 

Credit: Statista

The reduction of battery prices is also expected to help contribute to overall EV costs coming down, with many automakers looking to debut even more low-cost EVs in the next few years. Some have also been looking to produce their own EV batteries, which is expected to further reduce costs as companies reach volume production.

Many companies have also been partnering to help with EV battery recycling efforts, expected to help create a circular battery supply chain, saving on both available minerals and general costs of mining and refining. Last year, it was found that Redwood Materials, a battery recycler founded by Tesla Board member and Co-Founder J.B. Straubel, was able to recover around 95 percent of the metals used in old EV batteries.

Tesla’s years of battery tech investments are becoming a buffer against nickel’s rising costs

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

The post EV battery prices have dropped about 90% in 15 years: data appeared first on TESLARATI.