Electric vehicle battery cost falls to $132 per kWh, but it might go up from there

The cost of electric vehicle battery packs has fallen to $132 per kWh – continuing decades of cost improvements. However, it might go up over the next year as increased material prices are catching up to incremental cost improvements.

Price per kWh is the metric used to track the price of batteries. It can be used to talk about the cost of battery packs or battery cells.

For example, if Tesla were achieving a cost per kWh of $150 for its Model S battery pack, it would mean that the battery pack costs $15,000 since it has a capacity of 100 kWh.

In the auto industry, it is generally accepted that $100 per kWh for battery packs is the price point needed for electric vehicles to be cost-competitive with gasoline-powered vehicles.

Of course, this is relative to the type of vehicles since you can make cost-competitive EVs in many segments with higher battery costs.