Breaking Down the Cost of an EV Battery Cell


This post is by Govind Bhutada from Visual Capitalist


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The cost of a lithium-ion battery cell

Breaking Down the Cost of an EV Battery Cell

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As electric vehicle (EV) battery prices keep dropping, the global supply of EVs and demand for their batteries are ramping up.

Since 2010, the average price of a lithium-ion (Li-ion) EV battery pack has fallen from $1,200 per kilowatt-hour (kWh) to just $132/kWh in 2021.

Inside each EV battery pack are multiple interconnected modules made up of tens to hundreds of rechargeable Li-ion cells. Collectively, these cells make up roughly 77% of the total cost of an average battery pack, or about $101/kWh.

So, what drives the cost of these individual battery cells?

The Cost of a Battery Cell

According to data from BloombergNEF, the cost of each cell’s cathode adds up to more than half of the overall cell cost.

EV Battery Cell Component% of Cell Cost
Cathode51%
Manufacturing and depreciation24%
Anode12%
Separator7%
Electrolyte4%
Housing and other materials3%

Percentages may not add to 100% due to rounding.

Why Are Cathodes so Expensive?

The cathode is the positively charged electrode of the battery. When a battery is discharged, both electrons and positively-charged molecules (the eponymous lithium ions) flow from the anode to the cathode, which stores both until the battery is charged again.

That means (Read more...)