The Department of Energy’s (DOE) Vehicle Technologies Office has reported a significant decrease in the cost of lithium-ion battery packs for electric vehicles (EVs). According to the DOE, the cost has dropped by 90% from 2008 to 2023, using constant 2023 dollars.
The estimated cost for 2023 is $139 per kilowatt-hour (kWh) on a usable-energy basis for production at a scale of at least 100,000 units per year. This is a substantial reduction from $1,415 per kWh in 2008.
The decline in cost is attributed to advancements in battery technologies and chemistries, as well as improvements in manufacturing processes and increases in production volume. These developments have made EVs more economically viable and accessible to a broader range of consumers.
This reduction in battery costs is crucial for the ongoing growth of the electric vehicle market, as it directly impacts the overall affordability and adoption of EVs.
