BloombergNEF released finds that between 2010 and 2019 battery prices fell 87%, from $1,100 per kWh (kilowatt-hour) to $156 per kWh. According to BloombergNEF’s forecasts, they expect prices to be around $100 per kWh by the year 2023.
“According to our forecasts, by 2030 the battery market will be worth $116 billion annually, and this doesn’t include investment in the supply chain. However, as cell and pack prices are falling, purchasers will get more value for their money than they do today” said James Frith, BNEF’s senior energy storage analyst and author of the report.
Why the drop in prices? This can be attributed to a number of things including more resources being put into battery research and development, increased electric vehicle sales, and larger battery pack orders as shown in figure 1. With the continued development of new battery technology such as solid-state batteries and new anode and cathode material composition and increasing electric vehicle sales the price per kWh should continue to go down for the foreseeable future.
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