From pv magazine USA
We are in the midst of a year-long acceleration in the decline of battery cell prices – a trend that is reminiscent of recent solar cell price reductions.
Since last summer, lithium battery cell pricing has plummeted by approximately 50%, according to Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery manufacturer. In early summer 2023, publicly available prices ranged from CNY 0.8 ($0.11)/Wh to CNY 0.9/Wh, or about $110/kWh to $130/kWh.
Pricing initially fell by about about one-third by the end of summer 2023. Now, as reported by CnEVPost, large EV battery buyers are acquiring cells at CNY 0.4/Wh, representing a price decline of 50% to 56%. Leapmotor CEO Cao Li said the company expects further reductions, with prices potentially dropping to CNY 0.32/Wh this summer, for a decline of 60% to 64% within a single year.
EnergyTrend said that energy storage battery cells are priced similarly to electric vehicle battery cells.
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CnEVPost also reports that the battery cells being sold come equipped with advanced technologies, including faster charge rates, higher cycle life, improved temperature management characteristics, and higher energy density packaging.
A Goldman Sachs report in February attributes the accelerated price declines partly to a slight slowdown in electric vehicle adoption, leading to lower commodity prices. The finance group revised its growth projection for global battery demand to 29% for 2024, down from the previous estimate of 35%, with 31% growth expected in 2023.
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It’s a out time that battery prices fall. And they should even further… In a world where batteries will become ‘storage tanks’ this is a good thing.