How Much Does a Lithium-Ion Battery Cost in 2024?

Renogy

Oct 2nd 2024

Lithium-ion batteries are dominating the consumer market, be it for powering electric vehicles, energy storage solutions, power tools, or basic electronics. The lithium technology continues to rise, as modern sustainable mining techniques and demand are growing.

However, the breaking and making factor is usually the price, right? How much does a lithium-ion battery cost in 2024? It costs around $139 per kWh. But, it's much more complex. Understanding the lithium battery cost dynamics is important for manufacturers, investors, and consumers alike to make wise capital decisions.

This article explores the current lithium batteries price trends, comparisons, and factors that decide these prices. So, dive right in.

Factors influencing lithium-ion battery costs in 2024

Various factors, including cell composition, battery type, production, and more influence the cost of lithium batteries. Let's discuss them in detail.

Battery type

Substantially, the lithium battery cost relies on the type of metals used. Different lithium batteries use unique cathode materials. Here, valuable metals like cobalt, manganese, nickel, and lithium are pricier than low-cost materials like cobalt blended with aluminum.

For instance, an average lithium iron phosphate battery LFP costs around $560 compared to nickel manganese cobalt oxide ones NMCs costing 20% more.

Energy storage capacity

A higher concentration of energy cells is efficient but takes a toll on your pocket. For better usability, it is important to have notable storage capacity in a lighter container. This is only possible with an energy-dense battery, hence, the higher price.

Manufacturing

Cell manufacturing is yet another factor influencing lithium battery prices. An individual cell composition contributes about 80% of the production cost. Among these, cathode materials are the most expensive, especially high-precious metals. A higher manufacturing volume and efficient allocation of raw materials can effectively lower the initial cost.

Testing and shipping

Globally, Li-ion manufacturers are required to prove the safety of the batteries before transport. For this, in-house and external lab certifications become mandatory, adding to the cost. Depending on the certification type, it can cost around $500 to $30,000.

Cost comparison: lithium-ion vs other battery types in 2024

lithium battery cost 2024

Lead-Acid Batteries

Lead-acid batteries tend to be cheaper than lithium-ion batteries. Given the efficiency and composition, it is no surprise that an average li-ion cell costs twice more than a lead-acid one with the same capacity. However, it is only till the initial investment. The regular maintenance and compromised life span make lead-acid batteries pricier in the long term.

Nickel-Metal Hydride (NiMH) Batteries

Typically, NiMH batteries are light and have a stable chemistry. Unlike lithium batteries, nickel-metal hydride solutions offer low-cost production and development. These batteries are widely used in low-load applications like torches and small power tools.

An average NiMH battery costs half of a lithium battery, despite having additional developmental expenses. In comparison, apart from high initial investment, lithium batteries have strict regulations on storage and shipping, which adds to the overall price.

Solid-State Batteries

Solid-state battery prices are higher than their lithium counterparts, as they are new and not produced in big amounts. The current versions in the market are bulky yet can accommodate high power requirements. Lithium batteries, however, are comparatively low-cost for their mass production, despite having costly raw material.

Flow Batteries

Flow batteries are an excellent solution for energy storage in large-scale setups. In comparison with Li-ion, the purchasing cost of flow batteries is higher as they need a large and complex tank composition to manage electrolytes. However, their long service life and minimal maintenance checks make them pocket-friendly in the long run.

Lithium-ion battery costs for different applications

The Lithium battery prices in the consumer market change significantly, depending on their use, scale, and innovation. Here is how it differs for different applications.

Electric Vehicles (EVs)

According to BloombergNEF, an average EV battery cost is around $139 per kWh. Most EVs use low-cost Li-ion batteries, given the high demand. It also noticed a reduction in the prices of lithium battery packs per kWh. However, the batteries used for low and high-load EVs also vary significantly. Let's understand how.

Electric Vehicle	Lithium Battery Type	Battery Capacity	Battery Cost
2025 RAM 1500 REV	Nickel Cobalt Manganese NCM	229 kWh	$25,853
Rivian Delivery Van (2022)	Lithium Iron Phosphate LFP	135 kWh	$13,298
Ford Mustang (2023)	Lithium Iron Phosphate LFP	70 kWh	$6,895

Solar Energy Storage

Lithium batteries that store surplus solar energy, typically cost between $6800 and $10,700, excluding installation costs. The rule of thumb here is that the more energy-dense a battery is, the higher its price will be. The backup energy will also reduce your dependency on the grid. Here, commercial lithium-based solar battery prices can go up to $25,000.

Consumer Electronics

Lithium batteries are predominating the consumer electronics market. Most of these electronic batteries cost between $9 and $90. Let’s break down the prices of lithium-ion batteries for electronics.

Smartphones	$10 to $35
Laptops	$20 to $90
Tablets	$15 to $50

How to calculate the total cost of ownership of a lithium-ion battery?

The TCO or total cost of ownership is all the direct and indirect costs of having lithium battery-powered equipment. Having an idea of a battery’s initial purchase and maintenance cost helps you make better capital decisions. So, let’s find out more about Li-ion battery TCO.

Price per kWh

Price per kWh is your upfront battery cost. Li-ion batteries have a higher purchase price than traditional alternatives. An average Li-ion battery costs around $151 per kWh, while it is 2.8 times cheaper than a lead acid-powered battery.

Battery lifespan

Generally, lithium batteries' life cycle cost is lower than lead-acid ones that only last between 500 and 1000 cycles. Lithium batteries can not only charge several thousand times before disposing of them but also have a longer service life. Plus, in the case of traditional batteries, regular replacements will increase your TCO.

Energy efficiency

Lithium batteries are highly energy efficient, as they waste little heat. With minimal energy dissipation, the Li-ion batteries require less electricity and time for charging, leading to lower electricity bills. Moreover, these solutions are equally efficient at converting energy, offering long-term electricity savings.

Recycling and disposal costs

People tend to forget the end-of-life costs, but they are a vital part of TCO. Disposing or recycling Li-ion batteries is expensive yet convenient, as you are not dealing with harmful substances like lead-acid batteries. Also, Li-ion batteries are eco-friendly, take less power to charge, and last longer, offering a much better TCO than their counterparts.

How to choose the right lithium-ion battery for your needs?

Lithium batteries' performance depends on the different components, mentioned below.

Capacity: The battery capacity means how long your device runs after completing a charge. For this, evaluate your usage and select a suitable match.
Voltage: When choosing a Li-ion battery, consider its power ratings and match them with the battery’s voltage.
Size: Depending on the intended use, the size of your Li-ion battery matters. Just make sure the battery fits in the required device or vehicle space.
Cycle life: The more number of charge-discharge cycles, the higher its value. Consider how long you will use the battery and select an option with the desired cycle life.

User intent is another thing to consider when choosing the right lithium battery for your needs.

Electric vehicles: For EV RVs and campers lithium batteries, things like capacity, battery management systems, and compatibility matters the most.
Energy storage solutions: Look for components like capacity, power compensation, and compatibility with your system (solar or wind).

When choosing batteries for high-load applications like RVs, campers, and solar backup solutions, we recommend LiFePO4 Renogy Pro Smart battery and Renogy Solar Smart Leisure lithium battery. They are designed to manage high power loads while giving prolonged backup.

Future price trends for lithium-ion batteries

Over time, energy experts have noticed a considerable reduction in lithium battery prices. Last year, the global EV market grew exponentially, demanding scaled production of lithium batteries. In China, battery prices remained as low as $127 kWh in 2023.

Given the demands, it is expected that the increased manufacturing capacities will significantly lower the li-ion prices. Eventually, analysts believe that the cost of EVs will also drop by 40% between 2023 and 2025.

Beyond the electric vehicle industry, the need for lithium batteries is ever-increasing for efficient energy storage. Here, solar and wind energy backup systems rely heavily on lithium batteries, leading to a steady demand in the market.

However, the ethical mining practices also impact the supply of the lithium batteries. This is why the market is transitioning into grid-scale development projects.

Conclusion

Lithium batteries have completely changed the electronics and EV industry with their lightweight, stable composition, and constant power output. Despite the short-term lithium battery price fluctuations, the market has witnessed continuous cost reductions over the years.

However, when choosing one, you must have know-how of their performance, intended purposes, and price trends. Still confused? Your safest bet is trusted manufacturers like Renogy.

FAQs

How often should lithium batteries be changed?

An everyday Li-ion battery lasts between 300 and 500 charge and discharge cycles. These rechargeable batteries have a life expectancy of 3 to 5 years. So, use this as your replacement guide.

For instance, if you charge your phone once each day, the battery will last you more than one year. Most Li-ion manufacturers use charging patterns for replacements, rather than expiry dates.

Why are lithium-ion batteries so expensive?

Lithium-ion batteries are more expensive rechargeable solutions in the market, compared to lead-acid, nickel-metal, and nickel-cadmium. This is because of their high energy density and compact composition - perfect for high-load applications.

The advanced battery management systems, hefty raw material prices, and safe shipping of lithium batteries can also add to the expenses. Plus, manufacturing the lithium cell is an extensive and technologically-intense job, requiring critical resources.

What is the cost per kWh of lithium-ion batteries?

As per BloombergNEF, the average price of a lithium battery for electric vehicles is approximately $139 per kWh. In 2021, this price stood at a lower rate. Given the statistics, the cost of Li-ion batteries has decreased over the past decade.

Calculate the kWh of your battery using the formula, amp hours x voltage/ 1000. For instance, the kWh for a 12 Ah/ 100V battery will be 1.2kWh.