Bloomberg New Energy Finance (BNEF) reports a 14% decrease in lithium-ion battery prices for 2023, bouncing back from a brief uptick. Global demand for lithium-ion batteries in electric vehicles (EVs) and storage may reach 950 GWh by 2023. Despite the positive news,
BNEF adjusts its earlier projections, suggesting a slower decline in battery prices. China maintains the lowest battery production costs at $126/kWh, while the U.S. and Europe face challenges. Fastmarkets predicts NMC batteries hitting sub-$100/kWh by 2027, with LiFePO4 batteries achieving this milestone even earlier in 2025. The ongoing shift to LiFePO4 batteries, priced at $95/kWh, continues, with the industry closely monitoring localization efforts and regulatory impacts on battery prices.
