The development of an economy of scale in the production of batteries (starting with those intended for electric cars and continuing with domestic and large-scale storage systems) has led to a gradual reduction in the unit cost, going from 780 $/kWh in 2013 to the current 139 $/kWh (128 $/kWh if we consider batteries intended for electric cars).
Evelina Stoikou, BloombergNEF Energy Storage Analyst and main author of the latest Bloomberg report on the performance of the battery market, stated that what significantly reduced the price per kWh was “the significant growth in production capacity along the entire value chain” together with the progress made by research in the sector, with the use of cheaper materials and systems “cell-to-pack” as an alternative to cylindrical formats.
STORAGE AND RENEWABLES, THE PERFECT COMBINATION
The constant collapse in the price of storage systems is an important ally for decarbonisation, because it makes investments in renewable sources more attractive, thereby reducing, if not actually reducing compensatetheir intermittency.
With reference to the emblematic case of solar, which is currently both the most profitable and the most intermittent RES, the possibility of combining a photovoltaic system with an adequate storage system allows you to maximize the investment made, counting on both instant productionboth on the availability ofstored energy.
THE ADOPTION OF LITHIUM-FREE CHEMISTRY AND REDUCTION OF COSTS
In addition to the increase in industrial-scale production of batteries, which has also resulted in a lower unit cost the choice of more abundant and economical materials played an important role.
The industry in the sector increasingly prefers lithium iron phosphate (LFP) chemistry instead of traditional lithium ion; According to Bloomberg analysis, average LFP cell prices have fallen this year below 100 dollars/kWh ($95/kWh for automotive batteries, $130/kWh for storage systems).
Furthermore, Stoikou highlighted, in 2023, LFP cells cost on average 32% less than NMC cells (lithium nickel manganese cobalt).
The IEA (International Energy Agency) has also drawn up a study on the gradual decrease in the cost of batteries and the potential of this trend inattract green investments.
The study brought to attention the growing adoption of cheaper lithium iron phosphate (LFP) battery chemistry in place of classical lithium-ion based; in 2023, LFP batteries covered 80% of production of new batteries intended for stationary storage.
FUTURE SCENARIOS
Given the recent decisions in the field of energy security and the abandonment of fossil fuels as energy sources, carried out by the European Community and the G7 Coalition, the IEA forecast for the next few years is for an increase of at least six times global energy storage capacity by 2030 (90% via batteries, 10% via pumping systems, to be combined with hydroelectric power plants).
It will also undergo radical changes location of production hubswith China giving way to the United States and Europe, losing its hegemony over the sector.
The greater production dislocation (equal to at least 40% in North America and the Old Continent) will be fundamental to support the demand for storage systems, which, again according to IEA, will lead to an increase in invested capital of 400% (i.e. 1.2 trillion dollars by 2030), leading to doubling of investments in the industry over the next six years.
