When Will Battery Prices Fall, & By How Much? - CleanTechnica

The article from CleanTechnica discusses the significant decline in electric vehicle (EV) battery prices over the past three years and projects future trends. Currently, automotive manufacturers pay about €54 per kWh for lithium iron phosphate (LFP) battery cells and €58 per kWh for nickel manganese cobalt (NMC) cells, down from €127 and €140 per kWh respectively in 2020. This steep price drop is attributed to easing lithium costs, improved supply chains, factory capacity expansions, production process enhancements, and cell chemistry modifications. By 2030, battery prices are expected to fall an additional 10-15%, making EVs increasingly economically viable and accelerating their global adoption. The article also highlights the competitive advantage of Chinese battery manufacturers like CATL and BYD, whose imported cells are over 20% cheaper than those produced in Europe, posing challenges for European battery factories. Demand for batteries is projected to grow fivefold by 2035, with around 70% used in