Will Make Electric Cars Cheaper: Lithium Ion Battery Prices Are Falling!
While the electric car market is growing rapidly, lithium-ion battery prices are also decreasing at the same rate. A new report published by Goldman Sachs predicts that lithium-ion battery prices will drop 2025% in 2022 compared to 40. This will make the prices of electric cars more competitive and increase the adoption rate.
Why Are Lithium-Ion Battery Prices Falling?
Lithium-ion batteries are technologies that have been in our lives for more than 20 years and are one of the most important components of electric cars. During this time, lithium-ion battery prices have fallen by over 90%. Behind this decline lie factors such as increasing battery production capacity, increasing battery efficiency and energy density, decreasing prices of battery raw materials and developments in battery packaging technologies.
However, in the last few years, lithium-ion battery prices have increased slightly due to rising metal prices and inflation due to the pandemic and the effects of the Ukraine-Russia war. This rise slowed the growth of the electric car market. However, according to the report by Goldman Sachs, this increase was temporary and lithium-ion battery prices entered a rapid downward trend again.
How Much Will Lithium Ion Battery Prices Fall?
According to a report by Goldman Sachs, lithium-ion battery prices will drop to $2025 per kilowatt-hour in 99. This figure means a figure 2022% below the prices in 40. The previous expectation was for prices to fall by 33%. Half of this decline will come from falling prices of battery raw materials such as lithium, nickel and cobalt. From 2023 to 2030, a price decline of 11% per year is expected.