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The graph that shows how the price of lithium-ion batteries has plummeted in recent decades

A study published by Our World in Data shows how the cost of batteries has fallen as much as 97% in the last three decades, from almost the beginning of its commercialization.

This reduction in the cost of this vital element for electric cars is due, in part, to the improvement of technologies, to the learning curve and, indirectly, the increase in production, since it is more economical to produce in mass than in small quantities.

From $ 6,000 per kWh to $ 244: the reasons for this price drop

The price of batteries has plummeted

The price of ion batteries lithium it has been reduced by 97% in the last three decades. In 1991, a 1 kWh capacity battery cost up to $ 7,500, while in 2018 its price was $ 181, which is equivalent to 41% less.

But this decrease does not stop there, since between 2014 and 2018 the price fell by half.

The relationship between price and capacity Accumulated installed capacity comes after a learning curve, a diagram that represents the course of time on its horizontal axis and progress in the field on its vertical axis.

Lithium Batteries Price

Source: ourworldindata.org

In the graph you can clearly see how the price of batteries has fallen dramatically over the years and, although at some point it has suffered an increase, it has been seen as it has continued his downward path, arriving at the cost price that we currently have.

The price has decreased while the capacity has been increasing, which shows how mass production leads to a drop in costs.

From the study it can be seen that for lithium ion cells, this learning rate was 20.1%. This means that prices fell on average 18.9% each time installed capacity doubled.

In addition, the improvement in battery technology is not only seen in the price, but also in their size and capacity.

Every time more common smaller batteries with higher capacity, and we can see it every day by looking at our mobile phones, which are becoming lighter and the batteries take up less space.

The trend is clear: lithium-ion batteries will become increasingly cheaper, although now face a possible increase in value due to the elements that compose it.

Materials like lithium are now at a point where their price is higherThe fact is that in China it has increased by 170% so far this year and it may affect the manufacturing price of batteries, although the costs that were handled years ago will no longer be reached.

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Lenny Li

I started to play with tech since middle school. Smart phones, laptops and gadgets are all about my life. Besides, I am also a big fan of Star War. May the force be with you!

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