Every year we’re told the next breakthrough in battery technology will finally make EVs more affordable. Quietly, that’s already started happening… at least on the manufacturing side. According to a new study out of Germany, global battery costs have fallen by roughly 35 percent in real terms since 2020. Yet if you’ve been shopping for an EV lately, you’ve probably noticed they haven’t become dramatically cheaper. In fact, the median advertised price actually went up. Here’s why.
Researchers from the International Council on Clean Transportation (ICCT) analyzed more than 100,000 passenger car configurations sold in Germany between 2020 and 2025. When comparing equivalent models and adjusting for inflation, vehicle weight, power output, battery capacity, and electric range, they found battery electric vehicle prices fell by about 18 percent in real terms over the five-year period. Yes, prices fell by almost one-fifth. At the same time, internal combustion vehicles became roughly 2 percent more expensive.
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