EV battery prices set to plummet, dramatic 50% drop predicted by 2026

EV battery prices to plummet by 50% by 2026 due to tech advances and metal cost reduction.

: Goldman Sachs predicts a nearly 50% drop in EV battery prices by 2026 due to advances in technology and reduced metal costs. Battery prices are expected to decrease from $149 per kWh in 2023 to $80 per kWh by 2026. Nikhil Bhandari cites increased energy density and lower metal prices as primary factors. Despite geopolitical tensions, lithium-based batteries will remain dominant.

Significant reductions in EV battery prices are expected by 2026, as estimated by Goldman Sachs, which anticipates a nearly 50% price drop. This decrease is attributed to rapid technological advancements and reductions in battery metal costs, which are crucial for reaching cost parity with traditional vehicles.

Nikhil Bhandari, co-head of Goldman Sachs' Asia-Pacific arm, emphasizes two main contributors to the cost decline: increased energy density and reduced commodity prices. Despite geopolitical challenges, especially involving China and the US, these technological and economic trends are expected to have a substantial impact on the EV market.

Global EV battery prices have been falling, transitioning from $153 per kWh in 2020 to $149 in 2023, with further reductions to $80 by 2026 projected. Lithium-based batteries, favored for their established performance, continue to dominate the industry, despite developments in solid-state battery technology.

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