Paul Jan Jacobs

Paul Jan Jacobs

Paul Jan Jacobs is the founder of EVBoosters; a growth advisory and EV recruitment firm purely focused on powering electric mobility across Europe. He’s involved in the e-Mobility Business since 2010. Powering e-Mobility has become one of his bigger goals in life. Over time Paul Jan has become an EV expert and speaker on developments in e-Mobility markets, growth and funding topics. In particular the EV Charging Infrastructure landscape and ecosystem draw his attention to make this huge energy transition really happen.

For the first time, lithium-ion battery pack prices have risen to $151/kWh


The cost of lithium-ion battery packs has increased for the first time since BloombergNEF (BNEF) started monitoring the industry in 2010. This is due to rising raw material and battery component prices as well as skyrocketing inflation. After more than ten years of decreases, the volume-weighted average price for lithium-ion battery packs across all industries has risen to $151/kWh in 2022, a 7% increase from the previous year in real terms. Higher adoption of less expensive chemistries like lithium iron phosphate was overtaken by the rising cost pressure on batteries (LFP). BloombergNEF anticipates that prices will continue to defy past tendencies by remaining at current levels in 2019.


The given numbers are an average across a variety of battery end users, including various types of electric vehicles, buses, and stationary storage projects. Prices were $138/kWh on a volume-weighted average basis in 2022, especially for battery electric vehicle (BEV) packs. Average BEV costs were under $115/kWh at the cell level. According to this, cells represent 83% of the price of a pack on average. The usual 70:30 split has been deviated from the cell-to-pack cost ratio during the past three years. This is partly because pack design has changed, including the introduction of cell-to-pack strategies that have helped save costs.


Regionally, China had the cheapest battery pack costs at $127/kWh. The difference between packs in the US and Europe was 24% and 33%, respectively. The higher costs of manufacture, the wide variety of uses, and battery imports all contribute to these sectors’ relative immaturity. Low volume and customised orders drive costs higher for products at the top end of the spectrum.


If it weren’t for the increased use of LFP, a low-cost cathode chemistry, and the ongoing removal of pricey cobalt from nickel-base cathodes, prices may have increased much more in 2022. In 2022, LFP cells were, on average, 20% less expensive than lithium nickel manganese cobalt oxide (NMC) cells. But even inexpensive chemistries like LFP, which is especially vulnerable to lithium carbonate pricing, have felt the pinch of growing costs across the whole supply chain. In comparison to 2021, LFP battery pack costs increased 27% in 2022.


The report’s principal author, Evelina Stoikou, an associate in energy storage at BNEF, stated: “Raw material and component price increases have been the greatest drivers to the increased cell prices reported in 2022. Large battery producers and automakers have resorted to more aggressive measures, such as direct investments in mining and refining operations, to hedging against volatility in the face of these price rises for battery metals.


Although prices for important battery metals like lithium, nickel, and cobalt have recently softened marginally, BNEF anticipates that average battery pack prices will remain high in 2023 at $152/kWh (in real 2022 dollars).

In 2024, when additional extraction and refining capacity will be available, BNEF anticipates that battery costs will begin to decline once more. According to BNEF’s 2022 Battery Price Survey, average pack prices could drop below $100/kWh by 2026 based on the revised observed learning rate. This is two years later than anticipated and will make it more difficult for manufacturers to build and promote mass-market EVs in regions without financial assistance. The economics of energy storage projects might potentially suffer from higher battery prices.


Source: BloombergNEF


Get ‘FREE OF CHARGE’ access to this and 400+ other valuable EV Market Reports at Enjoy reading!

battery pack prices rise for first time to 151kwh 2
battery pack prices rise for first time to 151kwh


Share this article


Similar articles

battery market share nov22

BYD Surpasses LG Energy Solution in Installed Battery Capacity of Electric Cars Globally

Between January 2022 and November 2022, BYD surpassed LG Energy Solution to achieve third place in the ranking of installed battery capacity for all electric cars sold globally (BEV, PHEV, and HEV). During this period, 446.0 GWh, or 74.7% more energy than the previous year, was stored in the batteries of electric cars. Since the third quarter of 2020, the market has been continuously growing.

database europe is expected to take the global lead by 2030 with a 70 bev share

Europe is expected to take the global lead by 2030

While China is presently in front of Europe and the US in terms of electrifying the auto industry, the European market will recover in 2025 and regain the lead over the other global regions by 2030.

This website uses cookies to ensure you get the best experience on our website.