Battery prices collapsing, grid-tied energy storage expanding

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From pv magazine USA

We are in the midst of a year-long acceleration in the decline of battery cell prices – a trend that is reminiscent of recent solar cell price reductions.

Since last summer, lithium battery cell pricing has plummeted by approximately 50%, according to Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest battery manufacturer. In early summer 2023, publicly available prices ranged from CNY 0.8 ($0.11)/Wh to CNY 0.9/Wh, or about $110/kWh to $130/kWh.

Pricing initially fell by about about one-third by the end of summer 2023. Now, as reported by CnEVPost, large EV battery buyers are acquiring cells at CNY 0.4/Wh, representing a price decline of 50% to 56%. Leapmotor CEO Cao Li said the company expects further reductions, with prices potentially dropping to CNY 0.32/Wh this summer, for a decline of 60% to 64% within a single year.

EnergyTrend said that energy storage battery cells are priced similarly to electric vehicle battery cells.

CnEVPost also reports that the battery cells being sold come equipped with advanced technologies, including faster charge rates, higher cycle life, improved temperature management characteristics, and higher energy density packaging.

A Goldman Sachs report in February attributes the accelerated price declines partly to a slight slowdown in electric vehicle adoption, leading to lower commodity prices. The finance group revised its growth projection for global battery demand to 29% for 2024, down from the previous estimate of 35%, with 31% growth expected in 2023.

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