EV Battery Glut Drives Prices Down to $70-75 Per kWh

Sources are reporting that Chinese domestic battery cell prices are $70-75/kWh for LFP and $80-90/kWh for NMC. This is significantly lower than BMI’s (Benchmark Mineral) weighted global cell price average of below $100.

This would mean $30 per kWh lower prices would mean $1950 lower prices on a 65 kWh battery pack.

In 2022, the China Alliance for Electric Vehicles (CAEV), China produced batteries equivalent to 545.9 gigawatt-hours (GWh) of power but only 294.6 GWh were installed in EVs. In 2023, 233.5 GWh produced from January through May, while only 119.2 GWh were installed in EVs.

The battery glut is partly due to softening EV sales, but also due to a headlong rush into battery production. In 2022, 50 Chinese battery companies announced capacity expansions of almost $200 billion that would produce enough batteries for 30 million EVs. In 2023, China’s pure BEV sales are projected to be about 8-9 million units and another 2 million PHEV (plug in hybrids with small batteries).

12 thoughts on “EV Battery Glut Drives Prices Down to $70-75 Per kWh”

  1. OK, so where can I go on AliBabel and get this price?
    As far as I can tell this only applies to grid-scale stuff

    i.e. if you do not have $10,000,000 to spend, dont even ask!

    • [ “The US electrical grid was built over the last 100 years and it has not been properly maintained.”
      ‘https://www.nextbigfuture.com/2023/10/tesla-evs-and-solar-heading-to-90-lower-energy-costs.html’

      Why? Where?
      Bi-directional charging on local power points? ]

  2. OK Brian $75/kwh. give us a link to the Alibaba site where we can buy 20kwh at TWICE that price.

    20kwh of LFP at $150 each is $3000, $1000 shipping ( to Florida)
    I will plunk down my money right now. Well, I’ll have to wait for the Xmas bonus, but I’m in. Have an off-grid powerwall. Batteries are fading on me.

    These prices are only true if you buy millions of units.
    Its the price the big auto manufacturers will expect to pay.

    Please, say that.
    Otherwise simple folk like me get a bit annoyed, with you, when they try to actualy buy stuff.

  3. I’m not thinking transportation. I’m thinking battery back up. Battery cost on a 50 kWh unit is well under $4000. That’s a full two days of operation of my household, including the air conditioner and the Jacuzzi.

    • [ what’s a ~$200-400 a year (on a half yr/seasonal duty, ~$1-$2/day ) for battery backup with ~7000kWh/a (~182d*50kWh*0.75) ~$0.06/kWh_battery_wear_cost, w/o maintenance or other infrastructure cost ]

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