Bloomberg New Energy Finance (BNEF) has published the results of its industry survey on prices for lithium-ion batteries in 2019. We are talking about complete batteries (packs), not about the elements. Industry-weighted average prices fell to $ 156 per kWh – the results of the study show. This is approximately 13% lower than the average for 2018.
We emphasize that BNEF gives the market average weighted value for leaders such as Tesla / Panasonic, the cost is obviously lower.
The reduction in costs in 2019 was due to an increase in the volume of orders and sales of electric vehicles, as well as an increase in the use of cathodes with a high energy density. The introduction of new battery pack designs and lower production costs will lead to lower prices in the short term.
BNEF predicts a weighted average price of $ 100 / kWh by 2023. This is the point at which mass-market electric vehicles (small and medium class) are expected to achieve price parity with comparable gasoline / diesel cars. As for the cost of ownership, electric cars of different classes in many cases are already quite competitive, due to significant savings in fuel and maintenance costs.
James Frith, a senior energy storage systems analyst at BNEF and author of the report, notes: “According to our forecasts, by 2030 the annual market turnover will reach $ 116 billion, and this is not counting the investments in the supply chain. As cell and battery prices fall, customers will get more value for their money than they are today. ”
As we approach the second half of the 2020s, energy density at the level of cells and battery packs will play an increasingly important role, as this will mean a more efficient use of materials and production capacities. New technologies, such as silicon or lithium anodes, solid state cells, and new cathode materials, will be critical factors in further cost savings, BloombergNEF said.
We add that lowering the cost of lithium-ion batteries helps accelerate the development of energy storage systems in the electricity sector, where Li-ion remains the dominant technology.