The global prices for lithium ion batteries will drop by 6.5% per annum over the next decade, according to a new study published by Navigant Research.
Factors driving down the costs of lithium ion batteries include:
- The growing demand for stationary energy storage
- An increase in the manufacture of the battery technology
The report states that lithium ion batteries are the largest technology in the EV market and are the most popular storage technology in new power grid projects.
The need to improve the technology has been a result of its ability to help grid operators to improve grid efficiency and to effectively integrate new renewable power generation.
Despite the market growing significantly over the past three years, activity is limited in select countries including China, the US, the UK, Germany and France.
As EV sales continue to rise and battery costs decline, the prices for EVs is expected to decline as well, resulting in a dramatic win for the EV sector.
Allex Eller, senior research analyst at Navigant Research, said: “Energy storage prices are expected to decrease considerably over the next decade.
“Li-ion batteries have been the preferred technology for new stationary storage projects as well as EVs, and a growing demand and the resulting increase in manufacturing has driven down the cost.”
For more information about the report, visit Market Data: Advanced Battery and Energy Storage Pricing Trends