Li-ion battery pack prices for light-duty vehicles declined by an astounding 90% from 2008 to 2023 on average, according to the Department of Energy’s (DOE’s) Vehicle Technologies Office’s estimates.
Notably, the DOE used 2023 constant dollars to signify purchasing power (adjustment for inflation).
EV battery pack prices have fallen 90% since 2008
Electric vehicle battery pack prices for a light-duty vehicle in 2008 declined by a whopping 90% in 2023, per the DOE’s estimates.
To be specific, a kilowatt-hour of usable EV battery capacity cost approximately $139 last year. This amount indicates a notable drop from $1,415/kWh in 2008. According to the report, the DOE based this calculation on a “usable-energy basis for production at scale of at least 100,000 units per year.”
The significant drop in li-ion battery pack prices managed to outpace inflation (refer to the “current dollars” in the chart below):
Industry breakthroughs lead to cheaper batteries
The astounding 90% slide in li-ion battery pack prices for light-duty vehicles is primarily due to major innovations in battery technologies and chemistries.
In addition, breakthroughs in battery manufacturing and increased production volume also played a crucial role in the substantial price decline of li-ion battery packs.
Declining battery prices to accelerate EV market growth
Considering a price of $139/kWh of usable battery capacity, a brand new 100 kWh pack would total $13,900. Meanwhile, the more prominent 80 kWh battery pack should cost $11,120.
Therefore, the battery pack remains a significant portion of the overall cost if the electric vehicle is in the price range of $35,000-$40,000.
Nonetheless, the 90% decline in battery pack prices from 2008 to 2023 is still a significant progress in the electric vehicle industry.
It would be interesting to see whether EV battery prices will continue to decline in the following years. Upcoming new battery technologies and potential increases in production will undoubtedly play a significant role in sustaining the downward trend in EV battery prices.
Recycling may also help battery makers in reducing material and production costs, thus making their products less expensive.
