Large reductions in the cost of renewable technologies such as solar and wind have made them cost-competitive with fossil fuels. But to balance these intermittent sources and electrify our transport systems, we also need low-cost energy storage.
Are lithium-ion battery prices falling?
The price of lithium-ion battery cells declined by 97% in the last three decades. A battery with a capacity of one kilowatt-hour that cost $7500 in 1991 was just $181 in 2018. That's 41 times less. What's promising is that prices are still falling steeply: the cost halved between 2014 and 2018. A halving in only four years.
The improvements we've seen in battery technologies are not limited to lower costs. As Ziegler and Trancik show, the energy density of cells has also been increasing. Energy density measures the amount of electrical energy you can store in a liter (or unit) of battery. In 1991 you could only get 200 watt-hours (Wh) of capacity per liter of battery.
Is battery recycling worth it?
Battery recycling is always worth it, no matter the price. However, if you want to cash in on your scrap batteries, it is a good idea to understand why the prices fluctuate. Knowing the reasons behind these ups and downs in the scrap battery market can help you make the best decision for your business when it comes to scrapping used batteries.
Our researchers forecast that average battery prices could fall towards $80/kWh by 2026, amounting to a drop of almost 50% from 2023, a level at which battery electric vehicles would achieve ownership cost parity with gasoline-fueled cars in the US on an unsubsidized basis. Source: Company data, Wood Mackenzie, SNE Research, Goldman Sachs Research
What is the difference between battery cost and battery cost?
As a simple example, the price a buyer pays for a battery can be referred to as a battery cost (i.e., cost to the buyer), while the cost a manufacturer incurs to produce that battery—a distinct concept— can also be referred to as a battery cost.
Are scrap batteries worth it?
It is worth knowing that current prices of scrap batteries don't stay current for too long. In fact, they can fluctuate daily, just like the prices of gas. That is nothing to be concerned about. Battery recycling is always worth it, no matter the price.