- Lithium ion battery pack prices fall to a record low of $108 per kilowatt hour in 2025.
- Stationary storage sees the sharpest price decline, dropping 45 percent year on year.
- China continues to dominate global supply, intensifying price competition worldwide.
Lithium ion battery pack prices have declined by 8 percent since 2024 to a new record low of $108 per kilowatt hour, according to the latest analysis from BloombergNEF. The drop comes despite rising battery metal costs and is being driven by manufacturing overcapacity, fierce competition and the continued shift toward lower cost lithium iron phosphate batteries.
BloombergNEF’s 2025 Lithium Ion Battery Price Survey shows that increases in lithium and cobalt prices during 2025 did not translate into higher battery cell or pack prices. Supply risks affecting some Chinese lithium assets and new cobalt export quotas in the Democratic Republic of Congo contributed to higher raw material costs. However, the industry absorbed these pressures through wider adoption of LFP chemistries, long term supply contracts and enhanced hedging strategies.
China remains the central force shaping global battery pricing. The country continues to produce more battery cells than required for domestic electric vehicle and stationary storage demand, creating intense competition among manufacturers. This dynamic has been particularly evident in the stationary storage segment, where a large number of suppliers are able to compete for the same projects. China’s dominance in LFP manufacturing has enabled local producers to meet nearly all global demand for this chemistry.
The BloombergNEF survey covers a wide range of battery applications, including multiple electric vehicle categories and stationary storage systems, each with distinct performance and pricing requirements. In 2025, battery pack prices for stationary storage fell to $70 per kilowatt hour, down 45 percent from the previous year. This marks the steepest decline across all segments and makes stationary storage the lowest priced battery application for the first time.
Battery electric vehicle packs were priced at $99 per kilowatt hour, remaining below the $100 threshold for the second consecutive year. Across all segments, average LFP battery pack prices reached $81 per kilowatt hour, while nickel manganese cobalt packs averaged $128 per kilowatt hour.
According to Evelina Stoikou, head of BloombergNEF’s battery technology team and lead author of the report, relentless competition is continuing to push battery prices lower. She noted that record low prices represent a critical opportunity to reduce electric vehicle costs and accelerate the deployment of grid scale storage systems to support renewable energy integration globally.
The report also highlights significant regional price differences. China recorded the lowest average battery pack prices at $84 per kilowatt hour. Prices in North America and Europe were 44 percent and 56 percent higher, respectively, reflecting higher production costs and a greater reliance on imported batteries. In real terms, pack prices in China fell by 13 percent year on year, compared to declines of 4 percent in North America and 8 percent in Europe.
Europe experienced a sharper price drop than North America due to changes in United States trade policy and tariffs. As a result, many Chinese manufacturers redirected exports toward European markets, adopting more aggressive pricing strategies to protect sales volumes and meet annual targets. This shift further intensified competition across Europe.
Looking ahead, BloombergNEF expects battery pack prices to decline again in 2026. While raw material prices may face upward pressure, the continued expansion of low cost LFP adoption is expected to offset these increases. Over the longer term, ongoing investment in research and development, manufacturing efficiency and supply chain expansion is set to drive further cost reductions.
Emerging technologies, including silicon and lithium metal anodes, solid state electrolytes, new cathode materials and advanced cell manufacturing processes, are expected to underpin the next phase of battery price declines. For the energy sector in Africa, these trends signal improving economics for electric mobility, renewable energy integration and large scale energy storage projects in the years ahead.
Author: Bryan Groenendaal
