Energy
Visualized: How Much Do EV Batteries Cost?
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How Much Do EV Batteries Cost?
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The cost of an electric vehicle (EV) battery pack can vary depending on composition and chemistry.
In this graphic, we use data from Benchmark Minerals Intelligence to showcase the different costs of battery cells on popular electric vehicles.
Size Matters
Some EV owners are taken by surprise when they discover the cost of replacing their batteries.
Depending on the brand and model of the vehicle, the cost of a new lithium-ion battery pack might be as high as $25,000:
| Vehicle | Battery Type | Battery Capacity | Battery Cost | Total Cost of EV |
|---|---|---|---|---|
| 2025 Cadillac Escalade IQ | Nickel Cobalt Manganese Aluminum (NCMA) | 200 kWh | $22,540 | $130,000 |
| 2023 Tesla Model S | Nickel Cobalt Aluminum (NCA) | 100 kWh | $12,030 | $88,490 |
| 2025 RAM 1500 REV | Nickel Cobalt Manganese (NCM) | 229 kWh | $25,853 | $81,000 |
| 2022 Rivian Delivery Van | Lithium Iron phosphate (LFP) | 135 kWh | $13,298 | $52,690 |
| 2023 Ford Mustang | Lithium Iron Phosphate (LFP) | 70 kWh | $6,895 | $43,179 |
| 2023 VW ID.4 | Nickel Cobalt Manganese (NCM622) | 62 kWh | $8,730 | $37,250 |
The price of an EV battery pack can be shaped by various factors such as raw material costs, production expenses, packaging complexities, and supply chain stability. One of the main factors is chemical composition.
Graphite is the standard material used for the anodes in most lithium-ion batteries.
However, it is the mineral composition of the cathode that usually changes. It includes lithium and other minerals such as nickel, manganese, cobalt, or iron. This specific composition is pivotal in establishing the battery’s capacity, power, safety, lifespan, cost, and overall performance.
Lithium nickel cobalt aluminum oxide (NCA) battery cells have an average price of $120.3 per kilowatt-hour (kWh), while lithium nickel cobalt manganese oxide (NCM) has a slightly lower price point at $112.7 per kWh. Both contain significant nickel proportions, increasing the battery’s energy density and allowing for longer range.
At a lower cost are lithium iron phosphate (LFP) batteries, which are cheaper to make than cobalt and nickel-based variants. LFP battery cells have an average price of $98.5 per kWh. However, they offer less specific energy and are more suitable for standard- or short-range EVs.
Which Battery Dominates the EV Market?
In 2021, the battery market was dominated by NCM batteries, with 58% of the market share, followed by LFP and NCA, holding 21% each.
Looking ahead to 2026, the market share of LFP is predicted to nearly double, reaching 38%.
NCM is anticipated to constitute 45% of the market and NCA is expected to decline to 7%.
Energy
Ranked: Electric Vehicle Sales by Model in 2023
Today, electric vehicle sales make up 18% of global vehicle sales. Here are the leading models by sales as of August 2023.
Ranked: Electric Vehicle Sales by Model in 2023
Electric vehicle (EV) sales are gaining momentum, reaching 18% of global vehicle sales in 2023.
As new competitors bring more affordable options and new performance features, the market continues to mature as customers increasingly look to electric options.
This graphic ranks the top-selling EVs worldwide as of August 2023, based on data from CleanTechnica.
The Best Selling EVs in 2023 (Through August)
Below, we show the world’s best selling fully electric vehicles from January to August 2023:
| Model | Country | Vehicles Sold (Jan-Aug 2023) |
|---|---|---|
| Tesla Model Y | 🇺🇸 U.S. | 772,364 |
| Tesla Model 3 | 🇺🇸 U.S. | 364,403 |
| BYD Atto 3 / Yuan Plus | 🇨🇳 China | 265,688 |
| BYD Dolphin | 🇨🇳 China | 222,825 |
| GAC Aion S | 🇨🇳 China | 160,693 |
| Wuling HongGuang Mini EV | 🇨🇳 China | 153,399 |
| GAC Aion Y | 🇨🇳 China | 136,619 |
| VW ID.4 | 🇩🇪 Germany | 120,154 |
| BYD Seagull | 🇨🇳 China | 95,202 |
As we can see, Tesla‘s Model Y still holds a comfortable lead over the competition with 772,364 units sold. That’s more than double the sales of the #2 top selling vehicle, Tesla’s Model 3 (364,403)
But it’s hard to ignore the rising prevalence of Chinese EVs. The next five best selling EV vehicles are Chinese, including three from BYD. The automaker’s Atto 3 (or Yuan Plus, depending on market), is being sold in various countries including Germany, the UK, Japan, and India.
Meanwhile, Chinese automaker GAC Group also had two models of its Aion EV brand make the rankings, with the Aion S selling 160,693 units so far.
Regional market strength is also clear. For Volkswagen’s ID.4 model (120,154 units sold), Europe and China account for the majority of sales.
Given growing cost efficiencies and changing consumer behavior, global EV sales are projected to make up half of new car sales globally by 2035, according to forecasts from Goldman Sachs.
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