EV Battery Prices Up for First Time
Report shows several market pressures resulted in shift. Battery packs cheapest in China.
Inflation and rising raw material and battery component prices led to the first increase in lithium-ion battery pack prices since the first report on them in 2010.
IMAGE: Getty Images/Aranga87
Just as electric vehicle production and adoption move into higher gear, EV battery prices are up for the first time since BloombergNEF started tracking the segment.
The research provider reported today that a combination of inflation and rising raw material and battery component prices have brought about the first increase in lithium-ion battery pack prices since its first report on them in 2010.
Prices for the packs previously declined each year of BNEF’s report as production rose. Now volume-weighted average prices across all sectors have risen 7% year-over-year to $151 per kilowatt hour. It said it expects prices will be similar next year.
Regionally, battery pack prices were the least expensive in China, a major producer of EV batteries and components.
The trend, which threatens to scuttle goals of making EV prices competitive with those of combustion-engine vehicles, outpaced increased adoption of lower-cost chemistries, such as lithium iron phosphate, BNEF said.
The increase comes as the U.S. makes a multipronged effort to increase EV battery and battery component production in North America in order to meet EV production goals to help curb global warming and to wean the market off Asian suppliers, particularly those in China.
BNEF said it expects battery prices to fall again in 2024 as more lithium extraction and refining capacity comes online.
Originally posted on Auto Dealer Today
More Industry
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →
First-Half Dealership Deals Up
Buy-sell activity shows that acquirers are looking for value and scale as many retailers seek to leave an increasingly competitive and complex market, Kerrigan Advisors reports.
Read More →