The average cost of an EV battery fell by 14% compared to 2010 prices. While reduced production costs have certainly contributed to the decreased price of batteries, the most significant factor has, according to analysts at Bloomberg’s New Energy Finance unit, been the weak growth of consumer demand.

While the reduced prices of EV batteries will have a negative impact on many battery manufacturers, analysts argue that this phase is essential to further the growth of the international EV market. As the batteries in EVs account for approximately 25% of their ultimate market value, these reductions will serve to make EVs far more attractive to investors and policy makers as well as consumers.

Source: Bloomberg New Energy Finance press release

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