At the moment, the average battery cell cost stands at $128 per kilowatt-hour, but it will probably peak at $138 per kilowatt-hour in the next four years, the new report says. After 2026, the prices are expected to resume a gradual decline, and to stabilize at $90 per kilowatt-hour by 2031. The estimated increase in prices is due to higher demand for essential uncooked supplies, like lithium. Lithium is a valuable component of high energy rechargeable batteries thanks to its high electrochemical potential. In the last few years, there has been a decline in the price of EV battery cells because production of electric vehicles spiked around the world. But now, Sam Jaffe, VP of battery solutions at research firm E Source in Colorado, says that “The tsunami of demand is coming. I don’t think the battery industry is ready for it.”
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