The global average price of lithium battery packs fell to an all-time low!

Dec. 15,2024 - According to a BNEF survey report, the global average price of lithium battery packs in 2024 fell to a historic low of $ 115/kWh (about 837 yuan/KWh).

837 yuan/KWh is also 0.837 yuan/Wh.

This figure is 20% lower than that in 2023, which is the biggest price drop since 2017, only one fifth of that in 2013. The statistics cover the average price of different types of batteries, including power batteries and storage batteries.

According to the report, the factors pushing down the price of lithium battery packs this year include overcapacity, falling prices of metal and component, and the use of lower-cost lithium iron phosphate batteries. In the past two years, in the fields of electric vehicle and energy storage, it is expected that the demand for lithium battery will surge sharply. Battery manufacturers are actively expanding their production capacity, which leads to the phenomenon of overcapacity.

The report notes that prices are falling faster than expected, suggesting that EV prices could fall to a level similar to that of internal combustion vehicles as soon as 2026, when the average price is expected to be less than $ 100 per kilowatt-hour (currently about 728 yuan), which is often considered the benchmark for price parity. This goal has been achieved in the China market. At present, the average price of electric cars is lower than that of fuel cars.

In the energy storage battery market, since last year, the price has not exceeded 1.5 yuan /Wh. By 2023, BYD took the lead in falling to 1 yuan /Wh, and then achieved "price reduction", and the price of energy storage system experienced a sudden drop within one year.

In 2024, the central state-owned enterprises will take the lead in charging fees, further breaking through the bottom line of the price of large storage systems, and the car plant will open a shocking unit price of 0.435 yuan /Wh.

In addition, the price of industrial and commercial warehousing has been greatly reduced, from 1.5 yuan /Wh in September last year to 0.58 yuan /Wh at present.

It is worth mentioning that in the recent energy storage project, the lowest quotation of the 4-hour energy storage system is lower than 0.4 yuan /Wh for the first time, reaching 0.398 yuan/WH. This quotation has also set a new record lows, and it is understood that it is lower than the bottom line cost generally perceived by the industry.

The price war in the lithium market is in an intensified pattern.