- Energy Storage
- Battery Energy Storage
- stationary energy storage
- Energy Storage Systems
- Residential Energy Storage
- Utility-Scale Energy Storage
- lithium ion batteries
Falling Cell Prices for Lithium Ion Batteries Are Expected to Decrease an Additional 46% through 2029
Continued improvements in manufacturing and supply chain efficiencies are driving growth in the EV and stationary grid energy storage markets
A new report from Guidehouse Insights examines the pricing trends and issues driving growth for energy storage technologies, providing system and component price forecasts for residential energy storage, commercial and industrial (C&I) energy storage, utility-scale energy storage, and electric vehicle (EV) batteries, through 2029.
Declining prices for energy storage technologies continue to be the biggest driver of growth for both the EV and stationary grid energy storage markets. These declining prices are opening new markets and profitable applications for grid storage to compete with conventional fossil fuel generation technologies. Simultaneously, the falling price of batteries allows lower priced EVs with longer driving ranges to compete directly with gasoline and diesel vehicles. Click to tweet: According to a new report from @WeAreGHInsights, continued improvements in manufacturing and supply chain efficiencies—coupled with incremental improvements in energy density—are expected to yield an additional 46% reduction in average lithium ion (Li-ion) cell prices through 2029.
“Although supply shortages in 2018 and 2019 temporarily limited price reductions as demand outpaced supply, the industry is seeing aggressive declines in Li-ion battery prices,” says Alex Eller, senior research analyst with Guidehouse Insights. “The primary factor driving these price declines is the rapidly growing capacity of global battery manufacturing.”
Other advanced battery technologies and electromechanical energy storage system (ESS) technologies are gaining traction for grid storage due to their operating characteristics and better safety profiles. However, project size variation and different configurations result in a wide array of reported prices.
The report, Market Data: Energy Storage Pricing Trends, examines the pricing trends and issues driving growth for energy storage technologies. The report provides system and component price forecasts for four markets: residential energy storage, commercial and industrial (C&I) energy storage, utility-scale energy storage, and EV batteries (EVBs). To show the range of pricing in the market, base, high, and low cases are provided for each segment. The grid storage market forecasts include component-level pricing for average-size residential and C&I ESSs. Detailed forecasts for utility-scale projects based on duration are also included, with a 20 MW project modelled with 10 MWh, 20 MWh, and 80 MWh capacity. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, Market Data: Energy Storage Pricing Trends, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.