Batteries Keep On Getting Cheaper

Tesla’s battery price hovered around $400/kWh a few years ago, got down below $190/kWh in early 2016 if not earlier, and may be around $150/kWh today.  Elon Musk said that the cost of EV batteries would drop below $200 per kWh in the “not-too-distant future” in 2012.  Today, GM’s LG Chem battery cells are estimated at $145/kWh.  This means a pack may cost around $190/kWh.

According to BNEF analyst James Frith, the average battery pack price is set to fall below $100/kWh by 2025 — hopefully sooner.  According to Frith, $100/kWh is widely seen as “a tipping point in the adoption of EVs.”

The price estimated by BNEF comes from a survey of more than 50 companies.  The price decline is due to a growing battery manufacturing industry with significant economies of scale starting to really bring the costs down.

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