Study: Battery Pack Costs Fell 14 Percent Annually Over Seven Years

Cameron Aubernon
by Cameron Aubernon

Though the most expensive part of an EV or PHEV is its battery pack, a new study shows those costs are falling at a hefty clip.

According to Green Car Reports, a study by the Stockholm Environment Institute in Stockholm, Sweden found that the cost of a battery pack fell 14 percent per year between 2007 and 2014, coming down from over $1,000 USD per kWh, to around $410/kWh; market-leading EV makers saw their costs decline 8 percent annually to $300/kWh over the same period.

The study’s findings are the result of data from 85 cost estimates found in peer-reviewed academic journals, as well as reports from automakers, analysts and the media. However, the authors note that since battery producers and automakers almost never disclose the actual costs for those cells, the study is incomplete at best.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Stingray65 Stingray65 on Apr 16, 2015

    The cost drops are due to learning curve effects and economies of scale, but those apply to current technology batteries only, which have well known limitations in weight, recharging speed capabilities, and durability. Battery cost drops are also likely to slow down unless EV/hybrid sales take off substantially, thus current batteries with major limitations may get cheaper much more slowly. Any new battery technologies that have more energy density and longer life are likely to be much more expensive to start, and thus need another series of years to get down the cost curve, and until that happens I don't see electric cars as more than a niche, even if politicians continue to throw taxpayer money at them.

  • VanillaDude VanillaDude on Apr 16, 2015

    At $50 a barrel and OPEC complaining about the US dumping oil upon the global market, I suspect the costs of EV will need to fall considerably in order to make up the costs differences. The EV premium needs to be a whole lot smaller than it is, with gasoline so inexpensive and plentiful.

  • Carve Carve on Apr 16, 2015

    At those prices, I'm surprised more mfr's aren't replacing their lead/acid 12V batteries with lithium. It'd be a great way to save weight. I also suspect we'll begin to see plug-in hybrids that rely more and more on electric power, with a gas sustainer motor that's only sufficient to maintain 80 mph on level ground. You start the sustainer right away when you need to do a road trip, and rely on the electricity to make up the difference in acceleration, hills, or higher speeds.

  • DrunkMike DrunkMike on Apr 17, 2015

    I wonder how much the effort / technological overhead related to the ever increasing intrusion of Functional Safety will have on the overall cost of battery packs. System complexity (and paperwork) goes through the ceiling when your safety goals are ASIL C and D.

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