Low price of lithium battery for energy storage

How much does a lithium ion battery cost in 2024?

The global average price of lithium-ion battery packs has fallen by 20% year-on-year to USD 115 (EUR 109) per kWh in 2024, marking the steepest decline since 2017, according to BloombergNEF's annual battery price survey, unveiled on Tuesday. Energy storage battery. Photo by Anna Vasileva

How much did a lithium-ion battery cost in 2018?

The price of lithium-ion battery cells declined by 97% in the last three decades. A battery with a capacity of one kilowatt-hour cost $181 in 2018.

Why are lithium batteries so expensive?

The price reflects a global average that varies across geographies and application areas. The price decline is driven by factors such as overcapacity in cell manufacturing, economies of scale, lower metal and component costs, adoption of lithium-iron-phosphate (LFP) batteries, and slower growth in electric vehicle (EV) sales.

Are lithium-ion battery prices falling?

Yes, the price of lithium-ion battery cells has declined by 97% in the last three decades. A battery with a capacity of one kilowatt-hour cost $7500 in 1991 and just $181 in 2018.

What happened to battery prices in 2024?

New York, December 10, 2024 – Battery prices saw their biggest annual drop since 2017. Lithium-ion battery pack prices dropped 20% from 2023 to a record low of $115 per kilowatt-hour, according to analysis by research provider BloombergNEF (BNEF).

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.