Battery Price Trends: The Lithium Decline

Battery Market Intelligence · Data period 2025 (BloombergNEF/IEA) · Last reviewed 2026-09-16

Direct answer: Lithium-ion battery prices are at record lows: average pack costs fell 8% in 2025 to $108/kWh — a 93% drop since 2010. China leads at $84/kWh (down 13% in 2025), and stationary-storage packs hit benchmark lows around $50/kWh. The drivers are LFP adoption, overcapacity and intense price competition.

Market snapshot

GeographyGlobal
Year2024–2026 (as sourced per figure)
Battery scopeLead-acid + lithium-ion; scope stated per figure
UnitUS$ / yuan / TWh — stated per figure
Data sourceIEA, customs/industry data, research estimates (see Sources)

The price ladder (2025)

SegmentPriceTrend
Global average pack$108/kWh−8% in 2025; −93% since 2010
China average$84/kWh−13% in 2025
Stationary storage pack (benchmark low)~$50/kWhRecord low

Source: BloombergNEF battery price survey, 2025.

Why prices keep falling

Three forces compound: LFP adoption (a lower-cost chemistry taking share from NMC), overcapacity (China's ~80% capacity share producing more cells than demand absorbs), and price competition among cell makers fighting for volume. Lower input costs add a fourth. The result is a sustained price decline that has erased most of the battery's cost premium since 2010.

The lead-acid contrast

Lead-acid prices do not follow the lithium curve. As a mature commodity with established margins, lead-acid pricing is stable and tied to lead metal costs — it does not halve in a decade the way lithium has. This divergence is why lithium keeps encroaching on lead-acid applications: the gap in lifetime cost narrows every year even where lead-acid still wins on upfront price.

Our calculation

The compound rate: from about $1,160/kWh (2010) to $108/kWh (2025), the 15-year compound decline is roughly −15% per year — a cumulative fall of about 90%. A single year's decline looks incremental; compounded over 15 years it reshapes an industry. (Arithmetic from the BloombergNEF survey endpoints.)

The historical milestones

YearPack price (approx.)
2010~$1,160/kWh
2015~$350/kWh
2020~$137/kWh
2023~$139/kWh (the plateau year)
2025~$108/kWh

BloombergNEF survey values, rounded — the 2010s collapsed on scale; the 2023 plateau shows the curve is not monotonic.

The Editor's View

My take: The most consequential price trend in batteries is not the 8% annual fall — it is the 93% cumulative collapse since 2010, because that curve is what is rewriting which applications lithium can economically enter, year after year.

The reasoning: A single year's decline looks incremental; the decade curve is a structural shift. Buyers who anchor on today's $108/kWh miss that the trend has already pushed lithium past one lead-acid application after another, and the storage $50/kWh benchmark shows where it goes next.

This is the author's editorial view, not investment or purchasing advice.

Sources

Return to Battery Market Intelligence · World Battery Hub. Market data carries explicit sourcing and is not investment or purchasing advice.