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Electric vehicle battery prices are expected to fall almost 50% by 2026

Technology advances that have allowed electric vehicle battery makers to increase energy density, combined with a drop in green metal prices, will push battery prices lower than previously expected, according to Goldman Sachs Research. Global average battery prices declined from $153 per kilowatt-hour (kWh) in 2022 to $149 in 2023, and they’re projected by Goldman Sachs Research to fall to $111 by the close of this year.

When we talk about the battery from, let's say, 2023 to all the way to 2030, roughly over 40% of the decline is just coming from lower commodity costs, because we had a lot of green inflation during 2020 to 2023. In the future, we’ll be talking about solid state batteries, which could be a real game changer, because the technology can increase your energy density more materially and is slightly safer because there is no flammable liquid electrolyte. Solid state was initially supposed to come out by now, and it’s been pushed out to the later part of this decade because of challenges in moving from lab scale to mass production.

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