Price slump

Batteries for electric cars are cheaper than ever

(Bild: Mercedes-Benz)

By far the most expensive component in electric cars and the main reason for the high car prices are their batteries. However, cheaper raw materials and high production capacities in China have caused the price of electric car batteries to fall to a new low.

A kilowatt hour currently costs the equivalent of 97 US dollars (approx. 92 euros) on the global market, which is less than 100 dollars for the first time, according to market observers at Bloomberg NEF. The price for the complete pack was calculated, i.e. cells plus cabling, electronic components and housing.

In addition to improvements in productivity and technology, the experts believe that the main reason for the record price is the fall in raw material prices and overcapacity in Chinese factories. The increased use of the low-cost lithium iron phosphate variant is also pushing down average prices. Market observers expect prices to fall further in 2025 and the following years.

50 percent more expensive in Europe than in China
The prices are global averages. The actual values in Europe are almost 50 percent higher than in China. However, this development is also likely to lead to a downward trend in e-car prices here, as the battery remains the most expensive component.

To put this into perspective: typical capacities for small and compact cars are between 40 and 80 kWh; larger batteries are used in the higher classes, sometimes with 100 kWh and more.