How much does a lithium ion battery pack cost?
Lithium-Ion Battery Pack Prices Hit Record Low of $139/kWh
BloombergNEF&#;s annual battery price survey finds a 14% drop from to
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New York, November 27, &#; Following unprecedented price increases in , battery prices are falling again this year. The price of lithium-ion battery packs has dropped 14% to a record low of $139/kWh, according to analysis by research provider BloombergNEF (BNEF). This was driven by raw material and component prices falling as production capacity increased across all parts of the battery value chain, while demand growth fell short of some industry expectations.
The analysis indicates that battery demand across electric vehicles and stationary energy storage is still on track to grow at a remarkable pace of 53% year-on-year, reaching 950 gigawatt-hours in . Despite this growth, major battery manufacturers reported lower utilization rates for their plants, while demand and revenue fell short of many companies&#; expectations. As a result, many EV and battery makers revisited their production targets, which in turn impacted battery prices. Lithium prices reached a high point at the end of , but fears that prices would remain high have largely subsided since then and prices are now falling again.
Evelina Stoikou, energy storage senior associate at BNEF and lead author of the report, said: &#;It is another year where battery prices closely followed raw material prices. In the many years that we&#;ve been doing this survey, falling prices have been driven by scale learnings and technological innovation, but that dynamic has changed. The drop in prices this year was attributed to significant growth in production capacity across the value chain in combination with weaker-than-expected demand.&#;
The figures represent an average across multiple battery end-uses, including different types of electric vehicles, buses and stationary storage projects. For battery electric vehicle (BEV) packs, prices were $128/kWh on a volume-weighted average basis in . At the cell level, average prices for BEVs were just $89/kWh. This indicates that on average, cells account for 78% of the total pack price. Over the last four years, the cell-to-pack cost ratio has risen from the traditional 70:30 split. This is partially due to changes to pack design, such as the introduction of cell-to-pack approaches, which have helped reduce costs.
On a regional basis, average battery pack prices were lowest in China, at $126/kWh. Packs in the US and Europe were 11% and 20% higher, respectively. Higher prices reflect the relative immaturity of these markets, higher production costs, lower volumes, and the diverse range of applications. There was also intense price competition domestically in China this year as battery manufacturers ramped up production capacity aiming to grab a share of the growing battery demand.
The industry continues to switch to the low-cost cathode chemistry known as lithium iron phosphate (LFP). These packs and cells had the lowest global weighted-average prices, at $130/kWh and $95/kWh, respectively. This is the first year that BNEF&#;s analysis found LFP average cell prices falling below $100/kWh. On average, LFP cells were 32% cheaper than lithium nickel manganese cobalt oxide (NMC) cells in .
Miners and metals traders surveyed expect prices for key battery metals like lithium, nickel and cobalt to ease further in . Given this, BNEF expects average battery pack prices to drop again next year, reaching $133/kWh (in real dollars). Technological innovation and manufacturing improvement should drive further declines in battery pack prices in the coming years, to $113/kWh in and $80/kWh in .
Yayoi Sekine, head of energy storage at BNEF, said: &#;Battery prices have been on a rollercoaster over the past two years. Large markets like the US and Europe are building up their local cell manufacturing and we&#;re keenly watching how production incentives and tightening regulations on critical minerals will impact battery prices. These localization efforts will add a layer of complexity to how battery prices shape up regionally in coming years.&#;
Localization of battery manufacturing in regions such as the US and Europe could exert upward pressure on battery pack prices as the local industries scale up. Battery manufacturing in the US and Europe have higher costs due to higher energy, equipment, land and labor costs compared to Asia, where most batteries are currently produced. Local policies such as the $45/kWh production tax credit for cells and packs under the Inflation Reduction Act in the US could offset part of the cost, although the IRA&#;s impact on pricing is not yet clear.
Continued investment in R&D, manufacturing process improvements, and capacity expansion across the supply chain will help improve battery technology and reduce costs over the next decade. BloombergNEF expects next-generation technologies, such as silicon and lithium metal anodes, solid-state electrolytes, new cathode material, and new cell manufacturing processes to play an important role in enabling further price reductions.
Contact
Oktavia Catsaros
BloombergNEF
+1 212 617
About Bloomberg
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How Much Does a Lithium-Ion Battery Cost in ?
Most lithium-ion batteries cost $10 to $20,000, depending on the device it powers. An electric vehicle battery is the most expensive, typically costing $4,760 to $19,200. Next is solar batteries, which usually cost $6,800 to $10,700. However, most outdoor power tool batteries only cost $85 to $330, and cell batteries can run as little as $10.
Due to an increasing concern about climate change, there is a high public interest in battery technology. Lithium-ion (Li-ion) batteries are a source of clean, renewable energy. However, many consumers looking to switch from gas-guzzling power tools and automobiles are left wondering how much Li-ion batteries cost, so we broke it down for you.
In this cost guide:
Average costs of a lithium-ion battery in
Average lithium-ion battery cost$10 &#; $20,000Average electric vehicle battery cost$4,760 &#; $19,200Average solar battery cost$6,800 &#; $10,700Average outdoor tool battery cost$85 &#; $330Average personal electronic battery cost$10 &#; $90We searched for batteries on various online platforms (i.e., Home Depot, BestBuy, Amazon, BatteriesPlus) and researched financial data from news and government reports to bring you the full scope of lithium-ion battery prices. If you are looking for a low-cost battery, consider buying one that is used or refurbished.
Cost by device
Larger devices need more power leading to higher battery prices. So we broke down Li-ion battery costs by the type of device it powers:
Electric vehicle (EV) batteries
Most EV battery packs cost $4,760 to $19,200. However, if you want to save money, consider a used battery. We searched online for used and refurbished EV batteries and found them for as low as $750.
EV battery pack costs differ by auto manufacturer, as shown in the table below.
AutomakerTypical battery costTesla$11,000 &#; $20,000Toyota (Hybrid)$2,000 &#; $8,000Hummer$10,000Volkswagen $12,000 &#; $15,000*The prices in the table above are for the battery only, and do not include installation costs.
Solar panel batteries
Solar panel batteries typically cost $6,800 to $10,700 (not including installation). Solar batteries are essential to a solar energy system because they store excess energy that you can use when the sun isn&#;t shining. The more power your solar batteries store, the higher their price and the less dependent you are on the grid.
Most outdoor power tool batteries cost between $85 and $330.
Average cost$205Typical price range$85 &#; $330Extreme low end cost$40Extreme high end cost$600The cost of a power tool&#;s battery depends on its voltage, amp hours, and the brand. The table below shows typical battery cost by brand.
BrandTypical costDewalt$60 &#; $240Ego$180 &#; $600Greenworks$40 &#; $300Kobalt$100 &#; $360Milwaukee$65 &#; $300Ryobi$100 &#; $200High-efficiency Li-ion batteries, such as Ego&#;s ARC lithium batteries, cost more than a standard Li-ion battery.
Personal electronics batteries
Most personal electronic batteries cost $9 to $90, as shown in the table below.
ElectronicTypical battery costCellphone$10 &#; $35Tablet$15 &#; $50Laptop$20 &#; $90Less powerful electronics require a less powerful battery, so expect cutting-edge technology to run on an expensive battery.
Cost by kilowatt-hours
According to BloombergNEF, the average lithium-ion battery costs $151 per kilowatt-hour (kWh), and the average battery-powered electric vehicle (BEV) battery costs $138 per kWh. In the average per kWh cost was $141. However, overall Li-ion costs have dramatically decreased over the last ten years.
What is a kWh? Kilowatt-hours (kWh) measure a battery&#;s energy storage capacity. A kilowatt (kW) is a unit that measures electric energy consumption, and a kilowatt-hour is the energy a 1-kW device consumes in an hour. To calculate a battery&#;s kWh, use the following formula:
kWh = Amp hours × Voltage ÷ 1,000So, if you have a 12-Ah 100-volt battery, its kWh would equal 12 x 100 ÷ 1,000. Thus, it is a 1.2 kWh battery.
Other factors that affect cost
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The cost of a lithium-ion battery is also impacted by the following:
Battery type
The cost of a Li-ion battery depends on its chemistry. For example, batteries containing semi-precious metals cost more than batteries made from inexpensive raw materials.
Here are the most popular types of Li-ion batteries:
- Lithium Iron Phosphate (LFP) batteries are often used as a power source in RVs, boats, and electric scooters. Most LFP batteries cost $120 to $1,950 and the average LFP costs about $560.
- Lithium Manganese Oxide (LMO) batteries cost less than LFPs and are commonly used in power tools and electric bikes. Some electric vehicles also use LMOs.
- Lithium Nickel Manganese Cobalt Oxide (NMC) batteries cost about 20% more than LFP batteries and they are used in power tools and electric powertrains.
- Lithium Nickel Cobalt Aluminium Oxide (NCA) batteries cost about the same as NMC batteries and they power many electric cars, including Teslas.
- Lithium Titanate (LTO) batteries are the most expensive and they are used in electric vehicles, solar energy, aerospace, and military equipment.
- Lithium Cobalt Oxide (LCO) batteries typically cost $10 &#; $90 and are used in cell phones, laptops, and digital cameras.
Voltage
The more power a battery contains, the more it will cost. Therefore, batteries with a higher voltage (volt) are more expensive. Electric vehicle and solar panel batteries are often described with kilowatt-hours, but most power tool batteries are less than one kWh and described using voltage and amp hours.
The table below shows the average cost of a power tool battery based on its voltage.
VoltageAverage cost12 &#; 24 $ &#; 40$ &#; 60$+$335Amp hours
The more amp hours (Ah) a battery has, the longer a device can run on a single battery charge. So next, we&#;ll break down the cost of a power tool battery by Ah. Please see the results in the table below.
Amp hoursAverage cost2 &#; 2.5$$ &#; 6$ &#; 9$ &#; 12$335You may be interested in products that run on lithium-ion batteries, including:
Solar panel installation
Most homeowners pay $15,000 to $26,000 for solar panel installation, but the cost of solar panels depends on the type of panels, the size of the home, and labor costs. However, federal, state, and local incentives significantly reduce that price. Additionally, most homeowners enjoy an energy cost reduction that allows them to recoup their costs in 6 to 10 years.
Average cost$20,000Typical price range$15,000 &#; $26,000Extreme low end cost$5,000Extreme high end cost$50,000Battery-powered outdoor tools are soaring in popularity due to environmentally conscious consumers and lawmakers. In fact, Washington University in St. Louis reports that gas tools (such as leaf blowers and lawn mowers) pollute the air more than cars. In contrast, most battery tools release zero emissions.
However, gas-powered tools aren&#;t just bad for the air; they are also noisy, painful to maintain, and expensive. Furthermore, recent technological advances have paved the way for a new generation of beastly battery tools that can compete with gas-powered models. So, consider investing in battery-powered tools. They are easier to use and typically cost less than the gas alternative.
Lawn mowers
Most battery-powered lawn mowers cost $215 to $730, but riding mowers can cost as much as $4,000. Since gas lawn mowers are one of the largest contributors to air pollution, you should check out our list of the 8 best battery-powered lawn mowers.
Average cost$475Typical price range$215 &#; $730Extreme low end cost$150Extreme high end cost$4,000Leaf blowers
Most battery-powered leaf blowers cost $100 to $250, which is significantly less than gas-powered models. And there is no need to worry about their strength because the best battery leaf blowers will blow you away!
Average cost$150Typical price range$100 &#; $250Extreme low end cost$65Extreme high end cost$500Snow blowers
Battery-powered snow blowers typically cost $300 to $1,800, so we researched and uncovered the 8 best battery snow blowers.
Typical price range$300 &#; $1,800Average 1-stage blower$550Average 2-stage blower$1,380Chainsaws
A typical battery-powered chainsaw costs $180 to $380 and is great for pruning small to medium trees. However, the best battery chainsaws cost $270 to $480.
Average cost$280Typical price range$180 &#; $380Extreme low end cost$130Extreme high end cost$500Hedge trimmers
Most battery-powered hedge trimmers cost $60 to $200, and we compiled a list of the best battery-powered hedge trimmers.
Average cost$110Typical price range$60 &#; $200Extreme low end cost$35Extreme high end cost$1,135Electric vehicles
Lithium-ion automotive technology has given birth to various electric cars, SUVs, and pick-up trucks. Most electric vehicles cost $33,627 to $80,824, with luxury models costing significantly more than standard sedans.
Average cost$57,225Typical price range$33,625 &#; $80,825Extreme low end cost$27,400Extreme high end cost$2,400,000Landscape lighting
The right landscape lighting can add to your outdoor ambiance and increase your property&#;s curb appeal. Thankfully, there are many lithium-ion and solar-powered options to illuminate your landscape. Professionally installed landscape lighting typically costs between $2,100 and $4,900, but do-it-yourself battery-powered lighting is usually just $100 to $1,500.
Average cost$3,500Typical price range$2,100 &#; $4,900Extreme low end cost$500Extreme high end cost$7,000Cost of lithium-ion battery by location
Lithium-ion battery prices differ between countries. Li-ion batteries are the cheapest in China, but they have a lower cost in Europe than in the United States. About 80% of Li-ion battery cells are made in China.
FAQ about lithium-ion batteries
1. How many years will a lithium-ion battery last?Lithium-ion batteries usually last at least 2 to 5 years, but some can last as long as 15 to 20 years.
2. How damaging is lithium mining?Lithium-ion batteries are more eco-friendly than gas-powered products, but lithium mining negatively affects the environment in the following ways:
It requires a lot of water, and there often isn&#;t enough water left for local farmers and wildlife.
It deteriorates the soil structure.
It pollutes the air. According to MIT, most lithium is extracted from hard rock mines using equipment that runs on fossil fuels. As a result, 15 metric tons of CO2 are released into the air to get one metric ton of lithium.
It is better not to charge the battery fully; many Li-ion battery chargers say it is at 100% before it actually gets there. It is also better not to fully drain the battery before placing it on a charger. Not allowing the battery to charge or discharge fully will increase its lifespan.
Final thoughts
Lithium-ion batteries have revolutionized the automobile and electronics market. They are safe, lightweight, and provide constant power. Although their cost has recently increased, the price has steadily decreased over the years.
Although EV maintenance is still expensive for many Americans, battery-powered outdoor tools are often less costly than their gas-guzzling counterparts. However, high-end equipment used by pros is costly. As a result, most homeowners prefer to let a lawn care pro handle the hard work.
Note: LawnLove may get a referral fee for matching you with contractors in your area.
Main Image Credit: Juan Ramon Roballo&#;s Images | Canva Pro | License
Michelle Selzer
Michelle Selzer is a witty writer with a passion for plants and outdoor power tools. When she's not out in the yard, Michelle enjoys fishing, hunting, and chasing waterfalls. Posts by Michelle SelzerMichelle Selzer is a witty writer with a passion for plants and outdoor power tools. When she's not out in the yard, Michelle enjoys fishing, hunting, and chasing waterfalls.
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