BNEF reports battery pack prices drop to a new low of $108 per kilowatt-hour, even as metal costs rise
New York, December 9, 2025 — BloombergNEF (BNEF) reveals that lithium-ion battery pack prices have fallen 8% from 2024 to a record low of $108/kWh. The decline persists despite higher battery material costs, driven by ongoing overcapacity in cell manufacturing, fierce competition, and a shift toward cheaper lithium iron phosphate (LFP) chemistries, according to BNEF’s 2025 Lithium-Ion Battery Price Survey.
Metal prices climbed in 2025 due to supply risks at certain Chinese lithium assets and new cobalt export limits in the Democratic Republic of Congo. Yet these increases did not translate into higher annual prices for cells or packs. The industry absorbed the shocks through greater LFP adoption, long-term contracting, and broader hedging strategies.
China’s production of cells has consistently exceeded domestic EV and stationary storage demand, fueling intense competition among manufacturers. This pressure is especially acute in stationary storage, where many suppliers target the same projects. China’s dominance in LFP production enables its firms to meet nearly the entire global demand.
BNEF’s renowned battery price survey tracks multiple end-uses, including various electric vehicle types and stationary storage projects. Each segment typically requires different cells and packs to satisfy unique performance criteria, leading to diverse pricing dynamics across applications. In 2025, stationary storage pack prices dropped to $70/kWh, a 45% reduction from 2024—the steepest decline among all segments—making stationary storage the most affordable category for the first time. BEV packs topped the transport segment at $99/kWh—the second consecutive year below $100/kWh.
Across all segments, average LFP pack prices rested at $81/kWh, while nickel-manganese-cobalt (NMC) packs averaged $128/kWh. Full breakdowns by chemistry, application, and country are available to BNEF clients.
Evelina Stoikou, head of BNEF’s battery technology team and lead author of the report, commented: “Intense competition is pushing batteries cheaper every year. Record-low prices create a pivotal moment for the industry, offering an opportunity to reduce EV costs and accelerate grid-scale storage deployment to support renewables integration worldwide.”
Regional price variations are also highlighted. China recorded the lowest average battery pack price at $84/kWh. In North America and Europe, prices were 44% and 56% higher, respectively, reflecting higher local production costs and greater reliance on imported batteries that carry a premium compared with Chinese products. Real-term declines were largest in China (13% from 2024), with reductions of 4% in North America and 8% in Europe. Europe saw a larger drop than North America due to shifting policy and tariff dynamics in the US, prompting Chinese firms to redirect exports to European markets and engage in more aggressive pricing to sustain volumes and yearly targets, intensifying competition on the continent.
BNEF anticipates further price reductions in 2026, supported by ongoing low-cost LFP adoption even as some raw material prices climb. In the longer term, continued investments in R&D, manufacturing efficiency, and supply chain expansion are expected to drive additional technology improvements and cost cuts. Emerging technologies—including silicon and lithium metal anodes, solid-state electrolytes, new cathode materials, and novel cell manufacturing processes—are also expected to contribute to the next wave of price declines.
The full report covers:
- Battery prices by chemistry, region, and end-use
- Dynamics of raw materials and battery components prices
- BNEF’s 2026 and longer-term price outlook
- Key factors shaping price trends across this decade
- Public statements and roadmaps from major industry players
- Tariff and transport cost impacts on battery pricing
BloombergNEF clients can access the complete report here.
Media contact:
Oktavia Catsaros
BloombergNEF
ocatsaros@bloomberg.net
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BloombergNEF (BNEF) specializes in research on global commodity markets and the technologies driving the energy transition. Its analyses guide professionals across trading, corporate strategy, finance, and policy as they navigate industry change and uncover opportunities.
