The average price for EV batteries increased for the first time in a decade this year. The uptick in battery costs arrives as the broader auto industry dives headfirst into the all-electric vehicle space, including GM.
Per the recent Bloomberg NEF 2022 Lithium-ion Battery Price Survey, the average cost for EV batteries was up 7 percent this year compared to average costs recorded during the 2021 calendar year. The rise follows a steady decline in prices recorded over the last decade, with EV battery prices dropping from over $1,000 per kWh in 2010, to $141 per kWh in 2021. To note, prices recorded are averages across several different segments, including passenger vehicles, commercial vehicles, buses, and stationary storage, with both cells and packs considered.
According to Bloomberg, the rise in EV battery prices can be attributed to a number of different factors. However, rising material costs are considered the biggest factor overall, with cobalt, nickel, and lithium, all of which critical to EV battery manufacturing, now more expensive than in years past. The rise in material costs is the result of increased battery demand, as well as a delay in new supply coming online.
The recent BloombergNEF 2022 Lithium-ion Battery Price Survey is based on nearly 200 survey data points from EV battery buyers and sellers. As a weighted average, the average EV battery price does not show the high variation in prices between regions and applications. According to Bloomberg, the lowest EV battery prices are for electric buses and commercial vehicles in China, which average $131 per kWh, as compared to $138 per kWh in average pack prices for EV passenger vehicles. In terms of regions, pack prices were lowest in China at $127 per kWh, while pack prices in the U.S. were 24 percent higher, and pack prices in Europe were 33 percent higher.
Looking ahead, prices are expected to remain elevated through 2023, only to fall again in the 2024 calendar year. It’s also expected that broader EV price parity with ICE-based vehicles will begin to manifest around the $100 per kWh mark, although some EV segments are already arguably on par with ICE-based counterparts, including premium EVs, as well as mini city cars for the Chinese market.
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Comments
Everything is rising price wise!
Because of the chump in the white house.
You can add Mary and the EV clan
C8.R defending EVs, strange.
Wait wait wait….. you mean all those people who predicted that EV’s were going to cause a run on rare earth metals…. Who were called crazy FYI be the cultist…. were right????
Who knew Econ 101 applies to EV’s!?!? I though the unicorn farts used to power them were immune to science
When you factor in shortages, the pandemic, the war in Europe, and an oil tug-of-war between Western sanctions and OPEC+, then you realize there’s a global struggle over the world’s resources. Nothing is guaranteed.
Even the price of Legos are up.
It is everything that has gone up not just batteries.
In the immortal words of Gomer Pyle, “Surprise, surprise, surprise”!
Remember all those smart people who said that increasing volume would ensure dropping costs on EV batteries? Crickets now!
Yea Rick. Good thing oil prices have never fluctuated. Gee wow you’re so smart. You should be next fed chair.
Suggest you read the recent news about Stellanis closing an ICE assembly plant to offset the high cost of producing EVs. Production costs and sales of EVs are going to be the doom of several makers.
The increase in everything is due to the Russian – Ukraine War and world rise in fossil fuel prices. Remember most tangible goods are transported by diesel trucks, diesel ships and diesel-electric locomotives. The price of diesel has been in the stratosphere. Also ag products, seafood, and minerals are produced by equipment propelled by diesel engines. Oil is basic. Oil is used in just about everything.
That is only part of it. The economy was already having trouble from the stimulus fall out and Covid. Low interest rates were another problem.
Oil prices were gas on the fire.
The cold harsh reality is everything has gone up. Be it batteries for EV cars to ICE cars in general. Just look on this site of the price increase in the last year on several model several times.
The average price of an ICE vehicle is almost $50 today,
We are not done seeing increased in all products and material.
Folks here being dishonest are only fooling themselves.
Boring battery cars
Yup, I had battery cars as a child to play with.
Tired of this already. If Yavin, Hoth and Endor got into a war they would blame that too for an increase in pricing across the board. Hey, the moon and Mars are pissed off at each other. Awesome, let’s price hike something.
Another price increase for ice vehicles to pay for the Evs. . I am glad I just bought a new Colorado if if the transmission sucks. Problems already with 250 miles. C8.R, fluid change , yeah right. It’s new with the new fluid, the 8 sod transmission is garbage. This from a big gm fan.