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EV battery prices fell 8% in 2025 while electric-car sales and battery deployment climbed. The trend can help make electric vehicles more affordable, but cheaper packs do not automatically mean lower sticker prices: vehicle size, other costs and automaker pricing all affect what buyers pay.
What the 2025 figures show
The International Energy Agency (IEA) reports that average battery prices declined 8% in 2025. Its measure covers electric vehicles and battery-storage applications across chemistries. BloombergNEF’s 2025 survey separately puts the average lithium-ion pack price across surveyed applications at $108 per kilowatt-hour (kWh), also 8% below 2024. That $108 figure is not an EV-only price.
For a vehicle-specific comparison, BloombergNEF estimates that battery-electric vehicle packs averaged $99/kWh in 2025. Its stationary-storage pack average was $70/kWh. These figures cover different applications and should not be treated as interchangeable. IEA battery analysis and BloombergNEF’s 2025 price survey provide the respective measures.
| Measure | 2025 figure | Scope |
|---|---|---|
| IEA average battery price | Down 8% year on year | EV and battery-storage applications and chemistries |
| BloombergNEF average lithium-ion pack price | $108/kWh, down 8% year on year | Surveyed battery end uses |
| BloombergNEF BEV pack price | $99/kWh | Battery-electric vehicle packs |
| BloombergNEF stationary-storage pack price | $70/kWh | Stationary battery storage |
Why are EV battery prices falling?
Several forces pushed prices down rather than a single breakthrough. The IEA points to more efficient manufacturing, changes in chemistry and technology, stronger competition and relatively low critical-mineral prices. BloombergNEF also identifies excess cell-manufacturing capacity as a source of intense competition. A larger supply base can put pressure on prices, although overcapacity is not itself a guarantee that prices will keep falling.
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Chemistry mix shifts toward LFP
Lithium iron phosphate (LFP) batteries accounted for more than 55% of EV batteries deployed globally in 2025, according to the IEA. LFP packs averaged more than 40% less per kWh than nickel manganese cobalt (NMC) packs in 2025. That comparison needs context: some of the gap reflects stationary-storage batteries, which predominantly use LFP and have different energy-density requirements. LFP also contains no cobalt, reducing direct exposure to cobalt prices.
Regional prices are not uniform
The IEA says 2025 battery-pack prices in China were 30% below North America and 35% below Europe. BloombergNEF reports a different regional comparison frame: a China average of $84/kWh, with North American and European averages respectively 44% and 56% higher. These should be read as source-specific estimates, not combined into one universal regional price. Production location, local supply chains and the mix of batteries in each market influence the comparison.
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Lower prices coincided with a growing EV market
Global EV battery deployment reached 1.2 terawatt-hours (TWh) in 2025, nearly 30% above 2024, the IEA reports. EVs made up more than 70% of global battery deployment. Battery deployment measures batteries installed, not the number of cars sold.
Separately, electric-car sales exceeded 20 million in 2025, up 20% year on year and equal to 25% of all car sales, according to the IEA. Growth was uneven by region. China represented 60% of EV battery deployment, the European Union almost 15%, and the United States 10%; deployment stagnated in the United States. Electric-truck battery deployment grew fastest, more than doubling, largely because sales rose quickly in China. Global growth therefore does not mean every market or vehicle category expanded at the same pace. See the IEA’s electric-car market analysis.
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Will cheaper EV batteries make electric cars cheaper?
Lower pack costs create room to reduce vehicle costs, but they do not pass directly or uniformly through to a buyer’s sticker price. A finished car includes many costs beyond its battery, and manufacturers decide how to price each model. The IEA identifies battery pack size and price, vehicle-segment mix, new models, non-battery component costs and automaker pricing strategies as factors in observed vehicle-price changes.
For example, in China, a rising share of SUVs and larger average battery sizes would have lifted prices by roughly 3%; other factors more than offset that pressure. This illustrates why a falling battery-cost average can coexist with different retail-price trends across models and markets. For a household comparing cars, the useful number is the total purchase price and ownership cost of the specific vehicle—not a pack-price estimate alone.
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Could battery prices rise again?
Yes. Lithium and cobalt prices rose during 2025. BloombergNEF says manufacturers absorbed those increases through factors including LFP adoption, long-term contracts and hedging. The IEA cautions that if higher mineral prices persist, they could add upward pressure as lower-priced stockpiles are depleted. Long-term purchasing arrangements, vertical integration and the reduced cobalt exposure of LFP can moderate some of that risk, but they do not eliminate it.
Battery-price forecasts are therefore sensitive to both materials markets and manufacturing conditions. Competition and efficiency helped drive the 2025 decline; persistent mineral-cost increases could work in the opposite direction.
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