Chart of the downward trend in energy storage battery prices

How much demand for lithium-ion batteries in 2024?

That is more than 2.5 times annual demand for lithium-ion batteries in 2024, according to BNEF. “The price drop for battery cells this year was greater compared with that seen in battery metal prices, indicating that margins for battery manufacturers are being squeezed.

How much does a battery storage system cost?

Around the beginning of this year, BloombergNEF (BNEF) released its annual Battery Storage System Cost Survey, which found that global average turnkey energy storage system prices had fallen 40% from 2023 numbers to US$165/kWh in 2024.

By what percentage did battery prices fall between 2014 and 2018?

The cost of lithium-ion battery cells halved between 2014 and 2018. That’s a 50% reduction in just four years. The price of lithium-ion battery cells declined by 97% in the last three decades.

Will lithium-ion battery prices decline over the next decade?

Further price declines are expected over the next decade. Battery prices saw their biggest annual drop since 2017, with lithium-ion battery pack prices down by 20% from 2023 to a record low of $115/kWh, according to analysis by BloombergNEF (BNEF).

How is the global battery market advancing?

The global battery market is advancing rapidly as demand rises sharply and prices continue to decline. In 2024, as electric car sales rose by 25% to 17 million, annual battery demand surpassed 1 terawatt-hour (TWh) – a historic milestone.

Why is battery manufacturing declining?

Factors driving the decline include cell manufacturing overcapacity, economies of scale, low metal and component prices, adoption of lower-cost lithium-iron-phosphate (LFP) batteries, and a slowdown in electric vehicle sales growth. Currently, overcapacity is rife, with 3.1 TWh of fully commissioned battery-cell manufacturing capacity globally.