Solar Market and Cost Analysis slide image

Solar Market and Cost Analysis

Average Lithium-ion Battery Pack Price, 2010-2019 Battery pack price (real 2022 $/kWh) 1306 1013 796 732 649 ■All Sectors ■Stationary Storage 421 355 323 316 233 242 198 220 172 150 177 163 141 151 | 169 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 • From 2010 to 2021, average battery pack prices dropped 89%, falling in price every year. From 2016 to 2021, average battery pack prices within the stationary storage sector decreased 54%. However, from 2021 to 2022, average battery pack prices increased 7% across all sectors and 4% for stationary storage applications. BloombergNEF cited inflation and pandemic-related supply chain constraints (particularly lithium carbonate used for lithium-iron phosphate cells) as the primary drivers of increased costs. They also stated that these impacts were somewhat muted for stationary storage applications as Chinese companies squeezed their margins to continue to win orders. However, pricing dynamics continue to be a disadvantage for stationary storage due to lower volumes relative to the electric vehicle industry. To reduce costs, the battery industry continues to pursue new battery chemistries and to improve cell and pack integration and new manufacturing processes. - This strategies may be adopted sooner due to the rise in raw material costs. NREL 42 Sources: BloombergNEF. "2022 Lithium-Ion Battery Price Survey."
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