Lithium Ion Battery Prices Are Expected to Fall at an Average Annual Rate of 6.5% for the Next Decade
Growing demand for stationary energy storage and a resulting increase in manufacturing is driving down battery costs
A new report from Navigant Research examines pricing trends and issues driving growth for energy storage technologies. The report provides pricing forecasts for large format lithium ion (Li-ion) batteries used in both grid storage and EV markets. Installed project price forecasts are also provided for eight additional grid storage technologies.
Energy storage provides a multitude of specific services for the grid and can improve its efficiency or effectively integrate new renewable power generation. Li-ion batteries have been the most popular choice for new grid storage projects and are the largest technology in the electric vehicle (EV) market. Click to tweet: According to a new report from Navigant Research, Li-ion battery prices are expected to fall at an average annual rate of 6.5% for the next decade.
“Energy storage prices are expected to decrease considerably over the next decade,” says Alex Eller, senior research analyst at Navigant Research. “Li-ion batteries have been the preferred technology for new stationary storage projects as well as EVs, and a growing demand and the resulting increase in manufacturing has driven down the cost.”
Although the energy storage industry has matured significantly over the past 3 years, activity remains concentrated in select countries such as the US, China, Germany, the UK, and France. On the EV front, sales continue to rise rapidly around the world. Declining battery costs have positioned these vehicles for dramatic market success in the years to come, and long-range EVs are now competitive in price among economy brands after subsidies.
The report, Market Data: Advanced Battery and Energy Storage Pricing Trends, examines pricing trends and issues driving growth for energy storage technologies. The study forecasts pricing for large format lithium ion (Li-ion) batteries used in both grid storage and EV markets. Installed project price forecasts are also provided for eight additional grid storage technologies. This report provides component-level pricing breakdowns for both grid storage projects and EV battery packs. To illustrate the range of pricing in the market, the report provides base, high, and low cases for each market segment. An Executive Summary of the report is available for free download on the Navigant Research website.
*The information contained in this press release concerning the report, Market Data: Advanced Battery and Energy Storage Pricing Trends, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.