High battery prices have long impacted electric cars’ final cost, thus impeding their adoption. If the prices of these batteries were to fall, consumer interest could rise, stimulating demand for raw materials in the process.

The prices of lithium-ion batteries dropped 80% over the past decade, from $400/kWh in 2014 to $78/kWh in 2024. Simon Moores, CEO of critical minerals research firm Benchmark Mineral Intelligence, disclosed the drop on June 10.

As lithium ion batteries enter the era of politics and policy, it’s worth reflecting on how far we’ve come in 10 years.

In 2014, lithium ion batteries were $400/kWh average

In 2024, battery batteries are now $78/kWh average. @benchmarkmin data

The low raw material price… pic.twitter.com/wGWXF2oUic

— Simon Moores (@sdmoores) June 10, 2024

Moores attributes the drop to low raw material prices in recent years. For example, nickel has fallen from over $30,000 per tonne in January 2023 to around $18,000/tonne at the end of May 2024, while current lithium carbonate and hydroxide prices are four times lower than their 2022-2023 levels.  

It should be noted that the battery can account for up to 50% of the cost of an electric vehicle. Reducing their prices could spur electric vehicle sales, as the cars would be cheaper. 

In 2023, 14 million electric cars were sold were sold. This, according to the International Energy Agency (IEA), represents 18% of total car sales. This year, the IEA forecasts sales of electric cars at 17 million units or more than one in five cars sold worldwide.

Emiliano Tossou