The Decreasing Price of Batteries
- Edward Weeks PhD
- Jan 27
- 1 min read
With the new year comes the future of electric Class 8 trucks. Several options for fleets have been introduced into the marketplace, and the feasibility of these options has increased with the decreasing price of batteries per kilowatt hour (kWh). Additionally, there have been other improvements in the Class 8 area, including a decrease in the vehicle's overall weight and less expensive batteries. According to Goldman Sachs (2024), they forecast that the price of batteries per kilowatt hour could fall to $80/kWh by 2026, which would increase the feasibility of owning and operating an electric class 8 truck.
A closer inspection of Goldman Sachs's prediction shows what specific costs will change over time. The breakdown of a battery's main costs includes cathode material, anode material, operational expenses, cell-to-pack, profit, and other smaller costs. The primary cost savings are cell-to-pack costs, projected to decrease yearly with other stable factors, including a small profit margin. The better price comes as the battery density and price of metals decrease over time. Battery prices vary based on region as well. Recently, China has had the lowest battery cost at $94 per kilowatt hour. The hope is that as the decrease occurs, manufacturers will integrate the newer technology and reduce the costs sent to the consumers or businesses purchasing the trucks.
Resources
Comments