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EV battery prices are plummeting and that’s great news for buyers

EV battery prices are plummeting, falling faster than most expected. This year will mark the steepest decline since 2017. With new tech and cheaper alternatives hitting the market, electric vehicles will soon be even more affordable than their gas-powered counterparts.

Electric vehicle prices are quickly closing in on gas-powered cars after the cost of battery packs dropped by 20% in 2024.

According to BloombergNEF’s annual battery price survey, the cost of EV battery packs fell to $115 per kWh in 2024, its largest drop in seven years. The price drop is due to rising cell production, lower material prices, and cheaper LFP batteries hitting the market.

With EV battery prices expected to continue plummeting over the next few years, electric vehicles could soon be even more affordable than comparable gas cars.

According to the survey, average battery prices are expected to slip below $100 per kWh as soon as 2026. This is widely considered the “price parity” threshold with ICE vehicles. By 2030, prices could fall as low as $69 per kWh.

EV battery prices are plummeting faster than expected

The study also points out that geopolitical uncertainties and slower demand could impact pricing. It’s no secret by now that China dominates the global battery market.

“China alone is expected to produce enough battery cells to meet 92% of total global demand of 1.2 terawatt-hours for EV and stationary storage segments in 2024,” the report noted. This has “exerted downward pressure on battery prices.”