Benchmark’s global weighted Li-ion cell price drops to $98.2/kWh
09 September 2023
Benchmark’s global weighted average lithium-ion cell price has fallen to $98.2/kWh for the first time in two years, due to falling raw material prices. The dropping cell price is bringing the prospect of a $100/kWh battery pack closer to fruition, according to Benchmark.
At this point EVs could reach price parity with internal combustion engines, not accounting for subsidies.
Benchmark said that spot lithium prices in China have more than halved so far this year; Benchmark’s Cathode Index has dropped by more than 40%. The Benchmark Flake Graphite Price Index fell by 4.4% m-o-m during August. Year-to-date it’s down by 28%.
There's a big difference between a $100/ kWh cell price and a $100 / kWh battery pack price.
EVs are still considerably more expensive than ICEs at purchase time, and with electricity at e0.40 / kWh (in Ireland), not cheap to run either.
Also, look at the cost of domestic storage batteries - 5x - 10x the cell cost.
Posted by: mahonj | 09 September 2023 at 02:46 AM
@ mahonj:
Back in 2007, I installed a 15 kWp PV-system on the roof of my house. At that time it was prohibitively expensive without really substantial financial support. I don't need all the power the system produces so the excess is fed into the grid. With the payback over the grid, I've been enjoying moderate power prices and still have sufficient power from the system to also power my BEV.
Posted by: yoatmon | 09 September 2023 at 03:56 AM
@Yoat, that is the only way to reduce your electricity bills in Ireland, currently, but
a: very few people have houses big enough to mount a 15 kW array on them and
b: we are 53 degrees north here and so the power is very seasonal: so great in summer, not much use in winter.
Makes more sense if you have an EV, as you say.
Posted by: mahonj | 09 September 2023 at 11:44 AM
This is because BEVs aren't selling. Demand for BEVs have dropped off like a cliff, and BEVs are piling up unsold in gigantic lots in China.
However, PHEVs are gaining in demand, with waiting times to get a PHEV in the US is over a year. BYD are selling more PHEVs than BEVs. With cheaper battery prices, perhaps more people can afford BEVs.
The lowest hanging fruit is to mount PV panels at all parking lots at the work place for day-time charging of PHEVs. Direct DC to DC EV charging would be cheaper. In the winters in northern latitudes, PHEVs can use fuel instead, and use the waste heat of the engine for defrosting and cabin heating. A PHEV can also provide electricity backup for houses after a prolonged power outage due to snow storms, hurricanes, or forest fires, and supplement the grid during periods of extremely high demand.
Posted by: Roger Pham | 09 September 2023 at 12:37 PM