Lithium-ion battery prices fall | OilPrice.com

Battery metal prices have struggled as an increase in new production outstripped demandwhich coincides with a slow in the adoption of electric vehicles.

That Bruno Venditti from Visual Capitalist details below, Lithium prices, for example, have fallen nearly 90% from their peak in late 2022, prompting mine closures and hurting the price of lithium-ion batteries used in electric vehicles.

This chart uses exclusive data from our partner Benchmark Mineral Intelligence to show the evolution of lithium-ion battery prices over the past 10 years.

More than half of the battery price comes from the cathode

Lithium-ion batteries work by collecting current and directing it into the battery during the charging process. Typically, a graphite anode attracts lithium ions and holds them as charge.

During discharge, the cathode attracts the stored lithium ions and channels them to another current collector. The circuit works efficiently because the anode and cathode do not come into direct contact and are suspended in a medium that facilitates the easy flow of ions.

Currently, 54% of the cell price comes from the cathode, 18% from the anode, and 28% from other components.

Falling prices

The average lithium-ion battery price has dropped from $290 per kilowatt-hour in 2014 at $103 in 2023.

In the coming months, prices are expected to fall further due to oversupply in China.

However, despite falling prices, the demand for batteries is designed to grow ninefold by 2040, with total battery industry capital spending expected to triple, rising from $567 billion in 2030 to $1.6 trillion in 2040.

If you enjoyed this post, be sure to check it out graph which ranks the top lithium-ion battery producing countries by their estimated capacity in 2030.

By Zerohedge.com

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