The downward trend of energy storage battery costs

How much does a battery storage system cost?

Around the beginning of this year, BloombergNEF (BNEF) released its annual Battery Storage System Cost Survey, which found that global average turnkey energy storage system prices had fallen 40% from 2023 numbers to US$165/kWh in 2024.

By what percentage did battery prices fall between 2014 and 2018?

The cost of lithium-ion battery cells halved between 2014 and 2018. That’s a 50% reduction in just four years. The price of lithium-ion battery cells declined by 97% in the last three decades.

How much does energy storage cost in 2023?

Energy storage costs are not forgotten in the report either. Citing BloombergNEF data, cost per kWh have fallen to $165/kWh in 2023, down 40% from 2023, and half of the $375/kWh with data on the ongoing falls in costs attributed to a less constrained supply chain, dramatically lower lithium prices, and increased competition and scale.

Are lithium-ion battery prices going down?

Lithium-ion battery cells have seen an impressive price reduction. Since 1991, prices have fallen by around 97% for every doubling of capacity. This rate of reduction does not yet appear to be slowing down.

Why do we need low-cost energy storage?

To balance intermittent energy sources and electrify our transport systems, we also need low-cost energy storage. Lithium-ion batteries, the most commonly used, have seen impressive price reductions. Since 1991, prices have fallen by around 97%, with an average decrease of 19% for every doubling of capacity.

When did lithium-ion battery prices start to fall?

Since 1991, prices have fallen by around 97%. Lithium-ion battery cells have also seen an impressive price reduction. Prices fall by an average of 19% for every doubling of capacity. Even more promising is that this rate of reduction does not yet appear to be slowing down.