Global battery prices are expected to drop by 3% in 2569, despite high raw material costs and taxes pressuring the market.

Global battery prices are expected to drop by 3% in 2569, though the drop will be smaller than in 2568, when prices plummeted by 8% amid volatility in raw materials like lithium and cobalt.

On December 9, 2025, at 3:00 PM, Bloomberg News reported that a recent BloombergNEF survey indicates that the average price of battery packs is projected to fall by 3% in 2026 to $105 per kilowatt-hour. This is primarily due to overcapacity in China, increased competition, and the shift towards the lower-cost and safer lithium-iron phosphate (LFP) technology.

However, the decline next year will not be as significant as this year. The report indicates that battery prices in 2568 are projected to fall by as much as 8% to $108 per kilowatt-hour, even though the price of battery metals has risen due to supply chain risks in China's lithium mines and restrictions on cobalt exports from the Democratic Republic of Congo, resulting in a 124% surge between January and October.

Avelina Stoiku, Head of Battery Technology at BNEF, said: “Fierce competition is driving battery prices down every year. This is a critical time for the industry because historically low prices open up opportunities to reduce the cost of electric vehicles and accelerate the deployment of large-scale energy storage systems to support renewable energy worldwide.”

Efforts to reduce the cost of batteries, the most expensive part of electric cars, are helping drive EV adoption around the world, with China still leading the way. China's annual sales of electric vehicles are on track to exceed all U.S. vehicle sales, including combustion-engine cars, according to BNEF.

The falling cost of batteries is also supporting the expansion of stationary energy storage, which is playing an increasingly important role in stabilizing intermittent solar and wind power and meeting the growing demand for power from data centers. BNEF forecasts that global energy storage installations will more than double over the next decade.

The BNEF report also states that continued investment in research and development (R&D), manufacturing efficiency, and supply chain expansion will further advance battery technology and reduce costs. Novel technologies such as silicon and lithium-metal anodes, solid-state electrolytes, next-generation cathode materials, and novel cell manufacturing processes will play a key role in driving future price reductions.

Reference: www.bloomberg.com

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