The fall in battery pack prices
Lithium-ion battery pack prices have fallen about 93% since 2010, reaching a record low of USD 115/kWh in 2024 — a 20% drop in that year alone. Cheaper batteries underpin both electric vehicles and the industrial storage that lets plants shift load away from peak prices.
What it means
Battery prices falling around 93% over a decade, and still dropping double-digits some years, turn on-site storage from a curiosity into a practical tool for cutting peak-demand charges and firming up renewable supply. For an operator it means energy-storage economics are worth re-checking annually, because the threshold where storage pays back keeps moving in the buyer's favour.
Context
BloombergNEF runs an annual battery price survey covering EV and stationary-storage packs. The 2024 drop was the largest since 2017, driven by manufacturing overcapacity, intense competition and a shift to lower-cost lithium iron phosphate chemistry; prices fell a further 8% to USD 108/kWh in 2025. Prices vary by region and application — China runs well below the global average — and historical figures are quoted in real 2025 dollars.
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Relevant to: Power Generation · Chemicals · Steel & Metals