The Latest Bull Case for Electric Cars: The Cheapest Batteries Ever

The kind of battery that powers electric vehicles is now the cheapest it’s ever been thanks to a global ramp-up in production.

Lithium-ion battery packs are selling at an average price of $209 a kilowatt-hour, down 24 percent from a year ago and about a fifth of what it was in 2010, a Bloomberg New Energy Finance survey shows. The rate has further to fall — reaching below $100 a kilowatt-hour by 2025, according to a report by BNEF analyst James Frith.

That’s a magic number for the electric car business. According to Frith, $100 is widely seen as “a tipping point in the adoption of EVs.”

The price estimates are based on a BNEF survey of more than 50 companies, and their decline reflects a rise in battery manufacturing and “the economies of scale that come with it,” the report shows. Developers of stationary storage systems — like the kind that back up rooftop solar panels — can expect to pay 51 percent more than automakers because of much lower order volumes.

The 2017 Lithium-Ion Battery Price Survey aims to give a representative view of lithium-ion cell and pack prices across multiple industries including passenger EVs, stationary storage, electric buses (e-buses) and electric trucks (e-trucks). Clients can view the full 19-page report here. If you are interested to learn more about becoming a client, contact us.

About BloombergNEF

BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
 
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