- Battery prices have fallen 87 per cent in real terms to $156/kWh in 2019 from about $1,100 per kilowatt-hour in 2010
- The report also said that the path to achieving $100/kWh by 2024 looked promising but there will be challenges along the way
According to a report titled “BNEF’s 2019 battery price survey” by research company BloombergNEF (BNEF), battery prices have fallen 87 per cent in real terms to $156/kWh in 2019 from about $1,100 per kilowatt-hour in 2010. As per the report, the battery market will be worth $116 billion annually by 2030.
James Frith, BNEF’s senior energy storage analyst and author of the report, said, “According to our forecasts, by 2030 the battery market will be worth $116 billion annually, and this doesn’t include investment in the supply chain. However, as cell and pack prices are falling, purchasers will get more value for their money than they do today.”
Increasing order size, growth in battery electric vehicle sales
The report said that this drop in battery prices are due to increasing order size, growth in battery electric vehicle sales and the continued penetration of high energy density cathodes. The introduction of new pack designs and falling manufacturing costs will drive prices further down in the near future.
The report also said that as batteries are becoming cheaper, more sectors are shifting to electrifying. This is leading to further differentiation in cell specifications, with commercial and high-end passenger vehicle applications likely to opt for metrics like cycle life over continued price declines. But for mass market passenger EVs, low battery prices will continue to remain the most critical goal as per the report.
$100/kWh by 2024
Logan Goldie-Scot, head of energy storage at BNEF, said: “Factory costs are falling thanks to improvements in manufacturing equipment and increased energy density at the cathode and cell level. The expansion of existing facilities also offers companies a lower-cost route to expand capacity.”
The report also said that the path to achieving $100/kWh by 2024 looked promising but there will be challenges along the way. There remains uncertainty on how the industry will reduce prices even further, from $100/kWh down to $61/kWh by 2030 due to variety of options available to do the same.