In recent years, an increasing number of companies are investing heavily in the electric vehicle (EV) sector. One of the key advantages of this trend is that as new products become less novel, their prices tend to become more acceptable to consumers. This pattern is now evident in the lithium battery industry, which powers nearly all electric vehicles on the market today. According to a survey by Bloomberg New Energy Finance, a leading data provider for the clean energy sector under the Bloomberg Group, the global expansion of production capacity is driving down the price of power batteries to historic lows. The average selling price of lithium battery packs has dropped to $209 per kilowatt-hour (approximately 1,383.58 yuan), a 24% decrease from the previous year. In 2010, the same figure stood at around $1,000 (about 6,620 yuan). James Frith, an analyst from Bloomberg New Energy Finance, stated in the report that this downward trend is expected to continue. By 2025, the price of power batteries is projected to fall to just $100 per kilowatt-hour (around 662 yuan), meaning the cost will be reduced by over half compared to current levels. This prediction is based on a long-term analysis of 50 companies conducted since 2010. The forecast aligns with earlier estimates from Wards Auto, an American automotive publication, which suggested that key players in the energy technology space could bring battery prices down to $80 per kilowatt-hour by the mid-2020s. For the electric vehicle industry, this development is a major positive. Despite the fact that EVs are still generally more expensive than traditional gasoline-powered cars, the core components—such as the battery—are becoming significantly cheaper. While the cost of other parts in an electric vehicle is relatively low, the high cost of battery packs remains a major factor in the overall price of the vehicle. Looking ahead, automakers may shift their focus from simply increasing power to improving range. Electric vehicles can deliver instant torque, which often makes them feel fast and responsive. Manufacturers aim to extend this performance through larger battery packs, but this approach can significantly raise costs. For example, a 100 kWh battery pack currently costs about $20,900 (roughly 138,400 yuan), which is why such high-capacity batteries are mainly found in luxury models like the Tesla Model S, which starts at $94,000. However, mainstream automakers like Volkswagen are planning to use similar or even larger battery packs in their upcoming electric models, driven by the ongoing decline in battery prices. By 2025, the cost of a 100 kWh battery is expected to drop by around 53%, reaching approximately $10,000 (about 66,200 yuan). Frith notes that a $100-per-kWh battery is widely seen as a turning point that could accelerate the mass adoption of electric vehicles. Bloomberg New Energy Finance also highlights that the falling battery prices reflect the growing scale of the battery manufacturing industry. As production increases, economies of scale come into play, further reducing costs. For EV manufacturers, achieving these scale effects through platform-based production allows them to use pricing strategies to make electric vehicles more accessible. As platform development costs decrease, they can introduce innovative technologies without raising prices, thus enhancing the user experience. In contrast, developers of fixed energy storage systems (ESS), such as those used in solar power installations, face higher costs due to smaller production scales and lower demand. This makes it harder for them to achieve the same cost reductions as EV manufacturers. Another important consideration is the potential impact of emerging technologies like solid-state batteries and graphene-based supercapacitors. Although lithium batteries still dominate the market, companies like Fisker and Toyota are actively developing alternative solutions that could eventually challenge the dominance of lithium-ion batteries.

Mobile Accessories

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