March 20, 2026

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Lithium-ion battery pack prices continued to decline in 2025, with the global average falling to around $108/kWh, down from roughly $118/kWh in 2024 and $152/kWh in 2023. Despite temporary cost pressures earlier in the decade, average battery pack prices have declined by more than 55% since 2017 and by roughly 93% since 2010 in real terms, reflecting structural improvements in manufacturing scale, yield, and technology.

China remains the lowest-cost battery market, with average pack prices near $84/kWh in 2025, compared with global averages that remain 40–55% higher in North America and Europe. This cost advantage has enabled electric vehicles in China to reach upfront price parity with internal combustion vehicles across most segments, while higher battery costs continue to weigh on EV affordability in Western markets. However, this decline in battery pricing has been driven largely by substantial government incentives across the entire battery supply chain in China.

Battery costs are sensitive to lithium pricing. Lithium prices spiked in 2022–2023, which explains the temporary increase in battery costs during this period. Prices exceeded US$80,000/t by late 2022, up from US$15,000–20,000/t, largely driven by supply constraints.

While the global average battery pack price remains slightly above the $100/kWh parity threshold, recent cost trends and the accelerating adoption of LFP chemistries—especially in entry-level EV models—indicate that further convergence toward this level is increasingly likely, though not yet fully reflected in global averages.

See also:

Average BEV Battery Capacity Per Year

References:

“New Record Lows for Battery Prices.”, BloombergNEF, December 2025, https://about.bnef.com/insights/clean-transport/new-record-lows-for-battery-prices/

Colthorpe, Andy. “Li-ion battery pack prices fell 8% since last year despite metals prices rising, BloombergNEF says.”, Energy-Storage.News, December 2025, https://www.energy-storage.news/li-ion-battery-pack-prices-fell-8-since-last-year-despite-metals-prices-rising-bloombergnef-says/