After more than a decade of declines, volume-weighted average prices for lithium-ion battery packs across all sectors have increased to $151/kWh in 2022, a 7% rise from last year in real terms.
How much will lithium-ion batteries cost in 2022?
After more than a decade of declines, volume-weighted average prices for lithium-ion battery packs across all sectors have increased to $151/kWh in 2022, a 7% rise from last year in real terms. The upward cost pressure on batteries outpaced the higher adoption of lower cost chemistries like lithium iron phosphate (LFP).
Usually used in consumer electronics, lithium demand was always relatively low and steady, with supply easily available. The rise of electric vehicles and large-scale lithium-ion batteries for renewable energy storage meant a much larger demand that operators are capable of producing – which only further drives prices up.
Will the price of batteries for electric vehicles rise in 2022?
The price of batteries for electric vehicles looks set to rise in 2022 following a decade of sharp decline as supplies of lithium and other raw materials fail to keep up with ballooning demand.
While prices for key battery metals like lithium, nickel and cobalt have moderated slightly in recent months, BNEF expects average battery pack prices to remain elevated in 2023 at $152/kWh (in real 2022 dollars).
The surging lithium prices were already cause for concern for a lot of EV manufacturers last year. In 2022, with little movement in lithium production capacity and pressure from global governments to shift to low carbon operations has further increased demand.
Did battery prices increase 7% from 2021 to 2022?
BloombergNEF's annual battery price survey finds prices increased by 7% from 2021 to 2022 New York, December 6, 2022 – Rising raw material and battery component prices and soaring inflation have led to the first ever increase in lithium-ion battery pack prices since BloombergNEF (BNEF) began tracking the market in 2010.