Industry highlights

In 2022, the average transaction price of lithium-ion battery packs in all industries was $151/kWh, up 7% year on year. BNEF expects that the average price of battery pack will rise slightly to US $152 per kilowatt-hour this year. The price of lithium materials will also continue to rise, but should be lower than the previous peak, and pave the way for the battery price to fall again in 2024. In 2022, the United States promulgated the Inflation Reduction Act (IRA), which contains provisions that help promote the popularity of electric vehicles, electric vehicle manufacturing and battery supply chain. Although some details have not been released, car manufacturers and battery manufacturers have responded. According to the data tracked by BNEF, after the passage of the Inflation Reduction Act in August, the new investment related to electric travel and batteries in North America increased by nearly 28 billion dollars.

BNEF expects that by 2023, the investment in the North American battery supply chain will exceed $80 billion. Although the new investment of enterprises usually needs years of evaluation, and it is unfair to attribute the new investment entirely to the IRA Act, it is certain that the incentive measures are rapidly reversing the situation, making electric vehicles and batteries the focus of the United States.