Goldman Sachs estimates that the cost of vehicle power batteries will fall to $99 per 1kWh in 2025.

CTOnews.com, Nov. 22, according to the latest estimate released by Goldman Sachs, the cost of electric vehicle batteries will fall faster than expected.

The price of lithium batteries has fallen sharply over the past two decades, driving a revolution in electric vehicles. However, lithium batteries have risen instead of falling in recent years due to soaring metal costs and overall inflation.

Figure source: Goldman Sachs Research estimates that the cost of vehicle power batteries will fall to $99 per 1kWh in 2025, down 40 per cent from 2022 (33 per cent lower than previously predicted). This milestone is seen as a turning point for the large-scale expansion of electric vehicles in the market.

Goldman Sachs analysts believe that more than half of the reason is the fall in the price of raw materials for electric vehicles such as lithium, nickel and cobalt. Battery pack prices are expected to fall by an average of 11% a year from 2023 to 2030, Nikhil Bhandari, co-head of Asia-Pacific natural resources and clean energy research at Goldman Sachs, wrote in a team report.

CTOnews.com note: Goldman Sachs is focused on the cost at the battery pack level, not at the battery cell level.

At the battery pack level, prices in the electric car industry vary widely because automakers have many different ways to produce battery packs.