Volkswagen starts update program for ID.4 software in US, with performance improvements and new features
FREYR Battery and Nidec complete formation of joint venture

BNEF: Li-ion battery pack prices rise for first time since 2010 to an average of $151/kWh

Rising raw material and battery component prices and soaring inflation have led to the first increase in lithium-ion battery pack prices since BloombergNEF (BNEF) began tracking the market in 2010. After more than a decade of declines, volume-weighted average prices for lithium-ion battery packs across all sectors have increased to $151/kWh in 2022, a 7% rise from last year in real terms.


he upward cost pressure on batteries outpaced the higher adoption of lower cost chemistries like lithium iron phosphate (LFP). BloombergNEF expects prices to stay at similar levels next year, further defying historical trends.

The above figures represent an average across multiple battery end-uses, including different types of electric vehicles, buses and stationary storage projects. For battery electric vehicle (BEV) packs in particular, prices were $138/kWh on a volume-weighted average basis in 2022. At the cell level, average BEV prices were just $115/kWh. This indicates that on average, cells account for 83% of the total pack price.

Over the last three years, the cell-to-pack cost ratio has diverged from the traditional 70:30 split. This is partially due to changes to pack design, such as the introduction of cell-to-pack approaches, which have helped reduce costs.

On a regional basis, battery pack prices were cheapest in China, at $127/kWh. Packs in the US and Europe were 24% and 33% higher, respectively. Higher prices reflect the relative immaturity of these markets, the higher production costs, the diverse range of applications and battery imports. For the higher end of the range, low volume and bespoke orders push prices up.

Prices could have risen further in 2022 had it not been for the higher adoption of the low-cost LFP cathode chemistry and the continued reduction of expensive cobalt in nickel-base cathodes. On average, LFP cells were 20% cheaper than lithium nickel manganese cobalt oxide (NMC) cells in 2022. However, even low-cost chemistries such as LFP, which is particularly exposed to lithium carbonate prices, have felt the bite of rising costs throughout the supply chain. LFP battery pack prices rose 27% in 2022, compared to 2021.

Raw material and component price increases have been the biggest contributors to the higher cell prices observed in 2022. Amidst these price increases for battery metals, large battery manufacturers and automakers have turned to more aggressive strategies to hedge against volatility, including direct investments in mining and refining projects.

—Evelina Stoikou, an energy storage associate at BNEF and lead author

While prices for key battery metals such as lithium, nickel and cobalt have moderated slightly in recent months, BNEF expects average battery pack prices to remain elevated in 2023 at $152/kWh (in real 2022 dollars).

BNEF expects battery price to start dropping again in 2024, when lithium prices are expected to ease as more extraction and refining capacity comes online. Based on the updated observed learning rate, BNEF’s 2022 Battery Price Survey predicts that average pack prices should fall below $100/kWh by 2026. This is two years later than previously expected and will negatively impact the ability for automakers to produce and sell mass-market EVs in areas without subsidies or other forms of support. Higher battery prices could also hurt the economics of energy storage projects.

Despite a setback on price declines, battery demand is still reaching new records each year. Demand will reach 603GWh in 2022, which is almost double that in 2021. Scaling up supply at that rate of growth is a real challenge for the industry, but investment in the sector is also rising rapidly and technology innovation is not slowing down.

—Yayoi Sekine, head of energy storage at BNEF

Continued investment in R&D, manufacturing process improvements, and capacity expansion across the supply chain will help to improve battery technology and reduce costs over the next decade. BloombergNEF expects next-generation technologies, such as silicon and lithium metal anodes, solid-state electrolytes and new cathode material and cell manufacturing processes, to play an important role in enabling further price reductions.



Unfortunately none of this fits in with the meme of big batteries everywhere for everything under the time scales assumed by Governments etc.

At $150 KWh even a modest 50Kwh battery pack costs $7,500, more than the total price of the cheapest petrol cars on the road. Add the rest of the car, including the beefy suspension etc needed for the weight and so on, and you come out to as Toyoda, the head of Toyota, said:

'A flower on a high mountain, lovely to look at but which few can reach'

This is an elitist project, driven by subsidies for the well off, not everyman transport.

Well within battery resource constraints, hybrids and plug in hybrids can provide a much more cost effective alternative, which will help everyone, not just the elite.

At some stage batteries will be a practical and cost effective alternative to move towards even better decarbonisation, and with really decent sized batteries of 70KWh plus, not inconvenient 50KWh.

That does not mean that it is in any way sensible, practical or socially just to push through big battery only solutions at the moment, to continue the massive upwards wealth transfer which it has represented to date, to the detriment of society at large.


aren't you reaching conclusions too fast?
Inflation and scarcity on the markets are universal, not just an EV thing.
Energy prices has risen everywhere; petrol and petrol car prices are rising too.

The race is far from over. Li-ion and upcoming Na-ion & Al-ion batteries still have a lot of possibilities to go down in price (i.e. dry electrodes tech is still being born, but eventually everybody will use this production system).



I have argued for five years or so that proper bottom up costings of lithium batteries make it clear that breakthroughs are needed to really get the cost down enough for everyday, not premium, car transport, and that this is going to take a lot longer than battery only enthusiasts have proclaimed.

A couple of years back now the likes of Hyundai were saying that the bottom of the curve in rapid cost reduction of lithium batteries was coming soon, with further rapid reduction dependent on wholly different chemistries, which take years to get up and running in quantity.

None of that is to argue that at some point big battery BEVs will be uneconomic.
At the moment though I would not fancy buying some of the lower cost options only having a 50KWh or so battery, as in 10 years or so the effective capacity is way less, so you have a choice between scrapping a car way before it has reached normal life, as is happening to the Nissan Leaf, or putting a valuable battery into an old car, which mostly is not going to happen.

So the premature introduction of big batteries has been and continues to be an unecological disaster area.

The ones who have been:

' reaching conclusions too fast'

are those who have argued for the over-rapid roll out of big batteries, on a fancied never ending and rapid fall in cost indefinitely.

Not only did they reach conclusions too fast, but those conclusions were never based on reality, but a sales punt swallowed whole.


Which premature introduction of BEVs? BEVs are still marginal in the car market.

There is only a mature market for BEVs, light vehicles: hundreds of millions of li.ion electric mopeds, trikes, etc.. roam the roads of Asia.
Li-ion has completely triumphed in that area. I don't think it was premature in any way for that kind of vehicles.

About cars: nobody is forcing the consumers to buy a pure BEV at the moment, and that will continue at least for ten years from now.
Let the consumer buy car BEVs if they found them interesting (like I did) and can pay them. The market will sort which batteries work and which does not.


California will sell no more ICEVs after 2035 and the legislature has an active bill to make that 2030!


Well, if the politicos will it, and have legislation to that effect, then who cares about details like resources, economics and so on?

Any plans from them to abolish gravity, which can be annoying and inconvenient at times?


The pro is that prices continue to be low and value continues to be high. The con is that people need huge batteries in huge vehicles.

The comments to this entry are closed.