Lithium-ion batteries have seen their prices rise for the first time this year, driven by rising component prices and headline inflation, after more than a decade of continuous decline, according to BloombergNEF (BNEF).
The average price of a battery hit $151 per kWh in 2022, up 7% from 2021, the first since the research firm began tracking this market in 2010.
This pressure on the costs of raw materials and components, particularly lithium, weighed on the price despite the increased use of certain cheaper compounds, such as the lithium-iron-phosphate (LFP) battery, BloombergNEF notes.
24 and 33% more expensive in the United States and Europe
All sectors are affected, whether they are batteries for vehicles or storage plants, the firm specifies.
Geographically, batteries fetched an average price of $127/kWh in China.
They are 24% and 33% more expensive respectively in the United States and Europe, due to the “relative immaturity of these markets”, higher production costs and sometimes custom needs.
Overall, this price increase would have been even more marked without the adoption of LFP (20% cheaper than NMC, nickel manganese cobalt technology) and lower use of cobalt in battery cathodes, BNEF notes.
Aggressive Strategies
Faced with rising metal prices, “big car and battery makers are turning to more aggressive strategies, including direct investment in mines and refineries,” said Evelina Stoikou, lead author of the report.
BNEF anticipates a still high average battery price in 2023, around $152/kWh, before declining in 2024 with an expected decline in lithium prices once certain production capacities come online.
Ultimately, according to BNEF, this price should fall below $100/kWh by 2026, with a two-year delay, limiting the ability to mass-produce EVs without public support.
Source: BFM TV
