The global energy transition reached a new milestone in 2025 as lithium-ion battery prices continued their downward trajectory, falling to an average of $108 per kilowatt-hour. According to the latest data from BloombergNEF, this 8% year-over-year decline marks a persistent trend that has seen costs plummet from $365 a decade ago. These falling prices are fundamentally reshaping the automotive and power sectors, driving electric vehicle sales to over 25% of the global market and making grid-scale storage increasingly viable for a decarbonized future.
The latest annual survey from research firm BloombergNEF confirms that the cost of energy storage is becoming increasingly competitive. Aside from a brief spike in 2022, battery pack prices have consistently decreased every year since 2010. This steady decline is viewed by industry experts as a catalyst for the broader adoption of renewable energy, as cheaper storage solutions allow for more efficient use of power generated by solar panels and wind turbines.
The correlation between affordability and market penetration is most evident in the automotive industry. In 2016, when battery costs were more than triple current levels, electric vehicles represented less than 1% of global new car sales. By 2025, with prices hitting the $108 per kilowatt-hour mark, EVs accounted for more than one-quarter of all new vehicle purchases worldwide. This shift is critical for reducing CO2 emission levels and transitioning away from internal combustion engines.
Beyond transportation, the stationary storage sector is experiencing a similar transformation. Historically, adding batteries to the electrical grid was considered prohibitively expensive. However, as manufacturing scales up, costs for grid-scale applications are falling even faster than those for consumer electronics. This enables utilities to store excess renewable energy, ensuring a reliable power supply even when the sun isn’t shining or the wind isn’t blowing.
Much of this economic shift is attributed to the massive industrial output from China, which currently produces approximately three-quarters of the world’s battery supply. By leveraging high-volume manufacturing, Chinese firms have successfully optimized production processes, creating a deflationary pressure that mirrors the historical price drops seen in solar module and wind technology. As these costs continue to fall, the financial barriers to a clean energy economy are rapidly disappearing.