This data-file disaggregates the costs of electric vehicle batteries, which have been reported at $156/kWh in 2019. But how much deflation lies ahead, and is it possible to reach competitiveness with ICEs?
Our breakdown covers c25 categories, including materials (cobalt, lithium, manganese, nickel et al), manufacturing and cell finishing. Detailed estimates are also provided for 10 different cell chemistries, covering NCA, NMC, LFP and others.
Further deflation is expected in manufacturing costs, to help the industry reach cost-competitiveness with ICEs. But it will be counteracted by potential re-inflation for materials, and another more crucial consideration: The industry must eventually strive to earn acceptable profits and returns above mere cash costs.