EV Battery Glut Drives Prices Down to $70-75 Per kWh

EV Battery Glut Drives Prices Down to $70-75 Per kWh

Sources are reporting that Chinese domestic battery cell prices are $70-75/kWh for LFP and $80-90/kWh for NMC. This is significantly lower than BMI’s (Benchmark Mineral) weighted global cell price average of below $100.

This would mean $30 per kWh lower prices would mean $1950 lower prices on a 65 kWh battery pack.

According to my sources Chinese domestic cell prices are $70-75/kWh for LFP and $80-90/kWh for NMC. This is significantly lower than BMI’s weighted global cell price average of “below $100”. Note the numbers are not completely apples to apples but still interesting to compare.

— Lars Lysdahl (@lysdahllars) October 10, 2023

In 2022, the China Alliance for Electric Vehicles (CAEV), China produced batteries equivalent to 545.9 gigawatt-hours (GWh) of power but only 294.6 GWh were installed in EVs. In 2023, 233.5 GWh produced from January through May, while only 119.2 GWh were installed in EVs.

The battery glut is partly due to softening EV sales, but also due to a headlong rush into battery production. In 2022, 50 Chinese battery companies announced capacity expansions of almost $200 billion that would produce enough batteries for 30 million EVs. In 2023, China’s pure BEV sales are projected to be about 8-9 million units and another 2 million PHEV (plug in hybrids with small batteries).

Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.

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