The website Virtual Capitalist, using exclusive data from its partner Benchmark Mineral Intelligence, has produced an infographic showing the price evolution of lithium-ion batteries over the past decade.

More than Half of the Cost of Lithium Batteries Comes from Cathodes
Lithium-ion batteries function by collecting and directing current into the battery during charging. Typically, a graphite anode attracts lithium ions and holds them as a charge. During discharge, the cathode absorbs the stored lithium ions and directs them to another collector. This circuit works effectively because the anode and cathode do not make direct contact but are suspended in a medium that facilitates ion flow. Currently, 54% of the battery’s cost comes from the cathode, 18% from the anode, and 28% from other components.

Lithium Battery Prices Have Consistently Dropped Over the Past 10 Years
The average price of lithium-ion batteries has fallen from $290 per kilowatt-hour in 2014 to $103 in 2023, with the average price expected to be $78 per kilowatt-hour in 2024, representing a 73% decrease from 2014.

Global Average Battery Prices (USD/kWh)

• 2014: $290
• 2015: $230
• 2016: $180
• 2017: $140
• 2018: $128
• 2019: $120
• 2020: $110
• 2021: $99
• 2022: $129
• 2023: $103
• 2024 (estimated): $78

Compared to 2016, the market size for lithium batteries (measured in gigawatt-hours) has grown by 2000%. By 2040, battery demand is expected to grow ninefold compared to current levels.