The average price of lithium-ion battery packs globally fell by 8% in 2025 to a record low of $108 per kilowatt-hour ($108/kWh), according to the annual price survey by BloombergNEF (BNEF). However, the pace of cost reduction is expected to slow significantly in the coming year due to persistent raw material challenges and rising international trade tariffs.
BNEF projects the average battery pack price will decline by only 3% in 2026, reaching $105/kWh. This follows a steeper drop in 2025 from the 2024 average of $115/kWh, which was driven by factors including an oversupply of manufacturing capacity in China and intensifying market competition.
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The sharp decline in 2025 occurred despite volatility in the supply chain. BNEF noted that prices for some individual battery metals temporarily rose during the year, with cobalt prices specifically increasing by 124% between January and October due to supply chain risks, including restrictions on cobalt exports from the Democratic Republic of Congo and issues in Chinese lithium mines.
The slower projected decline for 2026 is attributed partly to persistently high raw material costs and, increasingly, to rising international tariffs. Counteracting these upward pressures are market forces such as expected manufacturing overcapacity in China, fierce competition, and “the ongoing shift to products that use lower-cost and safer lithium-iron phosphate technology.”
Evelina Stoikou, Head of the Battery Technology Team at BloombergNEF, emphasized the broader impact of the trend.
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“Cutthroat competition is making batteries cheaper every year,” said Stoikou. “This is an important moment for the industry, as record-low battery prices create an opportunity to lower EV costs and accelerate the deployment of grid-scale storage to support renewables integration around the world.”
Lower battery prices are deemed critical for both the adoption of electric vehicles and the expansion of the power grid, where battery costs have fallen from nearly $1,000/kWh in 2010. More affordable batteries benefit stationary energy storage systems, which are increasingly connected to the grid to stabilize power from renewable sources. BNEF expects global installations of stationary storage to double over the next decade.