Charted: Lithium-Ion Batteries Keep Getting Cheaper

Lithium-Ion Batteries Keep Getting Cheaper

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Battery metal prices have struggled as a surge in new production overwhelmed demand, coinciding with a slowdown in electric vehicle adoption.

Lithium prices, for example, have plummeted nearly 90% since the late 2022 peak, leading to mine closures and impacting the price of lithium-ion batteries used in EVs.

This graphic uses exclusive data from our partner Benchmark Mineral Intelligence to show the evolution of lithium-ion battery prices over the last 10 years.

More than Half of the Battery Price Comes from the Cathode

Lithium-ion batteries operate by collecting current and directing it into the battery during the charging process. Typically, a graphite anode attracts lithium ions and retains them as a charge.

During discharge, the cathode draws the stored lithium ions and channels them to another current collector. The circuit functions effectively because the anode and cathode do not come into direct contact and are suspended in a medium that facilitates the easy flow of ions.

Currently, 54% of the cell price comes from the cathode, 18% from the anode, and 28% from other components.

Declining Prices

The average price of lithium-ion battery cells dropped from $290 per kilowatt-hour in 2014 to $103 in 2023.

In the coming months, prices are expected to drop further due to oversupply from China.

Despite declining prices however, battery demand is projected to increase ninefold by 2040, with the battery industry’s total capital expenditure expected to nearly triple, rising from $567 billion in 2030 to $1.6 trillion in 2040.

Learn More About Batteries From Visual Capitalist

If you enjoyed this post, be sure to check out this graphic that ranks the top lithium-ion battery producing countries by their forecasted capacity in 2030.