Many analyses have proven that EV battery prices stopped reducing in 2022, pushing aside affordability objectives. However the U.S. Division of Vitality (DOE) lately issued a actuality examine.

Primarily based on 2022-constant {dollars}, battery prices truly continued falling final yr on the pack stage, regardless of accelerated inflation, based on DOE estimates. The company estimated the typical value of an EV lithium-ion battery pack at $153/kwh on a usable-energy foundation for manufacturing at scale of no less than 100,000 items yearly.

U.S.DOE estimated EV battery pack value, 2008-2022

That represents an 89% lower from 2008, when a comparable determine was $1,355/kwh, based on the DOE. The company attributes the decline in value to “enhancements in battery applied sciences and chemistries, and a rise in manufacturing quantity.”

Along with highlighting the progress made in battery affordability over the previous 14 years, the DOE’s constant-dollar evaluation is extra optimistic than others. On a flat-dollar evaluation—and gross capability reasonably than usable—battery prices climbed 7% in 2022, based on one report. With battery packs making up a lot of the price of an EV, decreasing battery costs is essential to creating them extra aggressive with internal-combustion automobiles, and attainable for extra individuals.

Rivian battery pack

Battery value was attributed to a spread of worth hikes over the previous yr, together with some from Tesla, and even a current worth hike from Volkswagen. A current examine instructed that value was nonetheless one of the crucial important limitations for EV adoption, in order that’s not an encouraging development.

Auto business executives have hinted at a softening of the market quickly—with one even predicting a market “collapse”—if EV costs do not fall. It is too early to inform when which may occur, although.