BloombergNEF: Global Lithium-Ion Battery Prices Drop to $108/kWh in 2025 Despite Rising Metal Costs
New York, December 9, 2025 — In a significant milestone for clean energy and electric mobility, BloombergNEF (BNEF) has reported that lithium-ion battery pack prices fell 8 percent year over year to reach an all-time low of $108 per kilowatt-hour in 2025. This drop comes in spite of rising battery metal costs, indicating strong industry resilience and efficiency gains.
Overcapacity and LFP Chemistry Fuel Price Decline
According to BNEF’s 2025 Lithium-Ion Battery Price Survey, the price drop was driven by several key factors:
- Manufacturing overcapacity, especially in China, created aggressive price competition
- A continued shift toward lithium iron phosphate (LFP) batteries, which are cheaper to produce than nickel-based chemistries
- Long-term supply contracts and hedging strategies that helped mitigate raw material cost volatility
Even with disruptions in lithium mining in China and new cobalt export quotas in the Democratic Republic of Congo, manufacturers were able to shield customers from direct price hikes.
China’s Market Dynamics Lead Global Trends
China remains the most cost-competitive market for battery production, with average battery pack prices falling to $84/kWh. This reflects a 13 percent drop from 2024, the largest decline across all major regions.
In comparison:
- North American prices were 44 percent higher
- European prices were 56 percent higher
The gap is driven by higher production costs, regulatory environments, and import dependencies. Chinese producers responded to changing U.S. tariff policies by shifting exports to Europe, where they adopted aggressive pricing to retain global market share.
Stationary Storage Hits New Low at $70/kWh
Among all applications, stationary energy storage experienced the most significant cost drop, with pack prices hitting $70/kWh, down 45 percent from 2024. For battery electric vehicles (BEVs), pack prices reached $99/kWh, remaining below the critical $100/kWh threshold for the second consecutive year.
Chemistry-Specific Insights
- LFP battery pack average: $81/kWh
- Nickel manganese cobalt (NMC) battery pack average: $128/kWh
These price trends further reinforce the growing dominance of LFP in both transport and storage sectors due to its cost, safety, and lifespan advantages.
Expert Commentary and Industry Outlook
Evelina Stoikou, Head of BNEF’s Battery Technology team, commented:
“Cut-throat competition is making batteries cheaper every year. This is an important moment for the industry. Record-low battery prices create an opportunity to lower EV costs and accelerate the deployment of grid-scale storage.”
Future Forecast: Further Price Reductions in 2026
BNEF forecasts continued price declines in 2026 despite raw material price pressure. The broader industry is expected to benefit from:
- Expansion of low-cost LFP adoption
- Research and development in new materials such as silicon and lithium metal anodes
- Emerging solid-state electrolytes and new cathode chemistries
- Manufacturing process innovation including dry coating and advanced assembly lines
These advancements are expected to reduce costs further while improving performance and safety, accelerating the affordability of electric vehicles and energy storage systems globally.
Alternative battery chemistries reducing long-term lithium dependence read more
Strategic Implications for Battery Supply Chains
For C-level leaders in automotive, energy, and manufacturing, this decline in lithium-ion battery prices signals a clear call to action:
- Reevaluate EV cost structures and pricing strategies
- Accelerate deployment of stationary storage for grid integration
- Diversify battery chemistries and sourcing to hedge against volatility
- Invest in manufacturing partnerships and innovation
As the battery cost curve bends further downward, businesses positioned to leverage low-cost, high-performance storage will gain a decisive competitive advantage in both transport and energy markets.
