The price of lithium-ion batteries for electric vehicles (EVs) has dropped significantly over the last decade, according to a report by the US Department of Energy (DOE). The DOE estimates that in 2022, the price of these batteries was about 89% lower than it was in 2008.
This estimate is based on constant dollars, which adjust for inflation and purchasing power. A graph from the DOE shows that the price of 1 kWh of usable battery capacity was $1,355 in 2008 and has dropped to $153 in 2022.
However, this estimate has been disputed by another recent report by BloombergNEF, which claims that the price per kilowatt hour had actually increased in 2022 for the first time since 2010. According to the BloombergNEF report, the cost for 1 kWh was 7% lower at $138 in 2021, and could have risen even more in 2022, had it not been for the widespread adoption of LFP (lithium iron phosphate) technology.
The report cites that LFP cells were around 20% more affordable than NMC (lithium nickel manganese cobalt oxide) batteries due to their use of less cobalt and more nickel in cathodes. However, it also states that even LFP batteries saw an increase in 2022, rising by 27% compared to 2021.
