The average price of a lithium-ion EV battery pack fell by 13% over the past 12 months, according to a cross section of nearly 150 buyers and seller questioned by BloombergNEF in a recent survey. This means that the cost of EV battery packs has plunged from more than $1,100 per kilowatt-hour to $137 in the space of a decade, and brought pricing levels to ‘a tipping point.’
The threshold for price parity with gasoline engines, according to BNEF, is around $100/kWh and analysts now expect battery makers to hit $101/kWh in 2023. Some batteries designed for Chinese e-buses are already selling at $100/kWh.
Even if prices for nickel, cobalt, lithium, and other raw materials used in batteries return to the highs seen in 2018, $100/kWh packs would be delayed by only a couple of years, the survey found.