Battery Prices Drops Slows

BloombergNEF reports that volume-weighted average battery prices only fell 6% to $132 per kilowatt-hour in 2021. This is down from $140/kWh in 2020 (in real 2021 dollars). The 6% drop was less than an expected 9% drop.

Bloomberg is expecting battery prices to go up slightly in 2022 before returning to about current levels in 2023.

Bloomberg still expects battery prices to drop to less than half by 2030.

There are reports that the lowest cost LFP (Iron phosphate) batteries are currently about $60-65 per kwh. BYD and CATL are the lowest cost LFP battery makers. BYD raised prices by 20% for any batteries they sell. BYD uses a lot of its own battery supply for their own cars.

The Limiting Factor and others believe that an LFP (Iron phosphate) version of the 4680 battery could reach $30 per kwh.

The high demand for batteries and increased pricing power for battery makers gives an advantage to car companies that have their own battery factories.

SOURCES- bloombergl

Written by Brian Wang

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