International. Goldman Sachs Research has issued a report forecasting the steep drop in battery prices.
According to the investment bank, prices are expected to reach US$99 per kilowatt hour (kWh) of storage capacity by 2025. In this sense, it would mark a 40% reduction compared to 2022.
"Our analysts estimate that nearly half of the drop will come from lower prices for electric vehicle raw materials, such as lithium, nickel and cobalt," said Nikhil Bhandari, co-head of Asia-Pacific Natural Resources and Clean Energy Research at Goldman Sachs Research.
This forecast represents a major change. Well, according to the report, battery pack prices are expected to decrease by an average of 11% annually between 2023 and 2030. This reduction could have a direct impact on the EV market.
As battery prices decline, Goldman Sachs Research suggests that the EV market could achieve cost parity with internal combustion vehicles (ICEs) by the middle of this decade, without the need for subsidies.
"Reducing battery costs could lead to more competitive EV prices, broader consumer adoption, and further growth in markets that EVs and batteries can target," Bhandari said.
Cost reductions could accelerate the mass adoption of electric vehicles, leading to greater competition with traditional cars.
Goldman Sachs Research underlines that this forecast of price reductions will contribute not only to the expansion of the electric vehicle market. It is also due to the evolution of more efficient technologies in the field of batteries.