Mon. Sep 25th, 2023
    Electric Car Batteries Become More Accessible with Decreasing Prices

    The automotive industry has been working hard to lower the prices of electric cars, and one key factor in achieving this is the cost of batteries. Fortunately, battery prices are decreasing significantly, which is a significant step towards making electric vehicles more accessible to consumers.

    A new report by Benchmark Minerals reveals that the average weighted prices of lithium batteries worldwide have experienced an 8.7% decrease in August, falling below $100 per kWh for the first time since August 2021. This translates to a current cost of $98.2 per kWh per cell, representing a 33% drop from its peak in March last year.

    The price reduction is due to various factors, including a decrease in the prices of essential raw materials such as lithium, nickel, and cobalt, which are key components in battery manufacturing. Cathode and anode prices have also experienced a significant decrease this year.

    China stands out as a leader in electric car production, with even lower battery prices. According to the Benchmark Minerals report, NCM811 prismatic cells in China have a minimum cost of $82.6 per kWh, approaching the target of $80 per kWh per cell. This downward trend in the lithium and battery market not only benefits electric vehicle production but also drives the expansion of battery-based renewable energy backup systems.

    This cost reduction is a significant advancement for the electric car industry, but it remains to be seen whether it will translate into more affordable electric vehicles for consumers. In any case, it is expected that the dynamic of price decrease will continue in the coming years, contributing to a more sustainable transition towards electric mobility worldwide.