By 2023, the global average battery price is expected to approach $100/kWh

The average battery price in 2019 has dropped 87% to $156/kWh compared to more than $1,100 per kWh
in 2010.
The latest forecast of Bloomberg New Energy Research BNEF shows that the average price of batteries is expected to be around
$100/kWh by 2023.

BNEF predicts that the cost reduction in 2019 is attributed to increased order volume, increased sales of electric vehicle batteries, and continued penetration of high energy density cathode batteries, the introduction of new packaging designs and falling manufacturing costs will drive down prices
in the short term.

BNEF's 2019 Battery Price Survey projections, released at the BNEF Summit in Shanghai in 2019, show that prices will fall below
$100/kWh as cumulative demand exceeds 2TWh in 2024.
This price is seen as the starting point
when electric vehicles will start to reach parity with internal combustion engine vehicles.
However, it depends on the sales area and vehicle segmentation
.

James Frith, senior energy storage analyst at BNEF and author of the report, said: "According to our forecasts, the annual size of the battery market will reach $116 billion by 2030, which does not include investment
in supply chains.
However, as battery and pack prices fall, buyers will get more value for
money than they do today.
”

BNEF's analysis found that as batteries become cheaper, more and more industries are electrifying
.
For example, the electrification of commercial vehicles, such as delivery vans, is becoming increasingly attractive
.
This will lead to further differentiation in battery specifications, with commercial and high-end passenger car applications likely to opt for metrics
such as cycle life rather than sustained price decline.
However, for mass-market passenger electric vehicles, low battery prices will remain the most critical goal
.

The report argues that the continued decline in battery costs from 2020 onwards will be achieved
through reduced manufacturing capital expenditures, new packaging designs, and changes in the supply chain.
Logan Goldie-Scot, head of BNEF's energy storage division, said: "Plant costs are falling
due to improvements in manufacturing equipment and increased energy density at the cathode and battery levels.
The expansion of existing facilities also provides a low-cost way for companies to expand capacity
.
”

As major automakers began producing customized EV platforms, they were able to simplify packaging design and standardize
according to different EV styles.
The simplified design is easy to manufacture and can be scaled up to fit larger or smaller vehicles
.
Changes in battery pack design will also allow for simpler thermal management systems and can reduce the number of
enclosures required per module.
As automakers begin sourcing batteries from multiple suppliers, the standardization of battery designs is also increasing
.

Demand for electric vehicles in Europe is growing and supply chains are changing
.
Battery manufacturers are increasingly building factories
in the region.
This helps reduce some of the costs associated with importing batteries from abroad, especially shipping costs and import duties
.

The road to $100/10 million battery prices by 2024 looks promising, and even if there will undoubtedly be some problems along the way, there is less and less uncertainty about how the industry will further reduce the price, from $100/kWh to $61/kWh
by 2030.

In the coming years, the energy density of batteries and battery packs will play an increasing role as it allows for more efficient use of materials and increased production capacity
.
New technologies such as silicon or lithium anodes, solid-state batteries and new cathode materials will be key
to helping reduce costs.