Lithium-ion battery prices dropped 10% in August, which could help lower the cost of the electric vehicles they power enough to put them on par with gas-powered automobiles.
EVs have traditionally had higher upfront costs, with the price of the battery a chief factor. But the average price for batteries fell to $98.20 per kilowatt-hour last month, according to energy analytics firm Benchmark Mineral Intelligence, the first time in two years it has dipped below $100.
Battery pack prices need to reach $100 per kilowatt-hour for EVs to achieve price parity with their fossil-fuel counterparts, Benchmark said.
“Decreasing cell prices could allow [original equipment manufacturers] to sell mass-market EVs at comparable prices to ICE vehicles, with the same margin, improving the attractiveness of the EV transition for both consumers and automakers,” Benchmark analyst Evan Hartley said in a statement.
Watch this: Don’t Buy an EV Until You See the Most Important Ones Coming in 2023
13:27
