- BMI estimates that between 2014 and 2017 the price of battery cells fell 16.5 per cent per annum
- Between 2017 and 2020 the drop was only 5.8 per cent per annum
As per a report by Reuters, Benchmark Mineral Intelligence (BMI) said that the cost of battery cells used for electric vehicles has fallen to an average of $110 per kilowatt hour (kWh). It makes such cars competitive with those using internal combustion engines (ICE).
The report added that BMI Managing Director Simon Moores said that the holy grail to make electric vehicles cheaper than ICE vehicles is deemed to be battery cells costing $100 kWh. The reality is at $110 a kWh for large automotive contracts we have already reached the tipping point, he added.
Reducing and stabilising the cost of the biggest input raw materials
As per the report, BMI estimates that between 2014 and 2017 the price of battery cells fell 16.5 per cent per annum. Between 2017 and 2020 the drop was only 5.8 per cent per annum. Moores said that we may have seen the last of the big easy wins for lithium-ion battery producers in reducing cost.He added that it is now about reducing and stabilising the cost of the biggest input raw materials such as lithium, nickel, graphite, cobalt and manganese.”