Battery prices are reportedly about to drop drastically. Forecasts are for the year 2026. Explanations.
Currently, the prices of electric cars are particularly high, largely because of the price of batteries. Good news: batteries should see prices fall by half from 2026. Here's why.
A price divided by two
A new study from Goldman Sachs was interested in the evolution prices batteries in recent years but also for the future. Firstly, the study shows that between 2022 and 2023, the prices battery packs have decreased slightly.
In fact, we can notice that the kWh lost 4 dollars on average during this period. In 2022, it was $153 to reach $149, or 146 euros at 142 euros. If this drop is relatively small, the study predicts a drop drastic between prices in 2024 and prices in 2026.
If we are to believe the figures from the study of Goldman Sachsthe kWh should reach around 110 dollars by the end of the year 2024. Better yet, the prediction estimates that the kWh will be only 80 dollars in 2026, or approximately 76 euros.
Obviously with batteries at this price, the prices Electric cars are also said to be on the decline. According to the study, this is when it would be judicious to invest in electric mobility.
What can cause this drop?
All you have to do is take your diary and mark the year 2026 with a cross. However, the study explains why the costs are expected to decline by 2026. According to the latter, there are two main reasons.
The first reason concerns the evolution of technologies. According to the study, cell techniques are better, which implies better density energy. All this leading to a reduction in the price of the battery.
The second reason concerns the cost raw materials. Here too, we will observe an overall drop in prices. Enough to allow make batteries at lower prices. This drop is not new since it was already present in 2022 and this will continue until 2030.
A very important piece of data since according to the study this drop in prices raw materials will represent up to 40% the fall in prices of electric vehicles. Good news for future electrification of the car fleet.
If this trend continues, it could also give hope to European manufacturers who live complicated weeks.
