Electrical-car battery-pack costs have fallen 13% in 2020, in some circumstances reaching a vital milestone for affordability, in keeping with an annual report launched Wednesday by Bloomberg New Power Finance (BNEF).

Common costs have dropped from $1,100 per kilowatt-hour to $137 per kwh, lower of 89% over the previous decade, in keeping with the evaluation. At this time last year, BNEF reported a mean value of $156 per kwh—itself a 13% lower from 2018.

Battery-pack costs of lower than $100 per kwh had been additionally reported for the primary time, albeit just for electrical buses in China, in keeping with BNEF. The $100-per-kwh threshold is commonly touted by analysts as the purpose the place electrical autos will obtain true affordability.

Batteries additionally achieved $100 per kwh on a per-cell foundation, whereas packs truly got here in at $126 per kwh on a volume-weighted common, BNEF famous. The reported predicted that common battery-pack costs will likely be $101 kwh by 2023—about the identical timeframe BNEF predicted final 12 months.

“Worth reductions in 2020 are because of rising order sizes, development in BEV gross sales, and the introduction of recent pack designs,” the report mentioned, including that new cathode chemistries and reducing manufacturing prices will proceed to drive costs down within the close to time period.

Mercedes-Benz battery production

Mercedes-Benz battery manufacturing

A glut of lithium final 12 months crossed with a tight supply of other materials wanted for batteries left the trade accelerating work on new chemistries and battery sorts.

Even when the worth of uncooked supplies returned to highs seen in 2018, that may solely delay achievement of the $100-per-kwh milestone by two years, James Frith, lead writer of the report, mentioned in a press release.

BNEF’s evaluation exhibits spectacular progress for the EV battery trade. Even $200 per kwh by 2020 sounded far-fetched in 2012, however the trade simply beat that.

Predictions earlier in the year by Wooden Mackenzie already famous that whereas the pandemic may gradual EV development (they had been largely flawed on that depend), it would not hamper battery affordability targets.

Tesla additionally mentioned plans for less expensive batteries at its Battery Day occasion earlier this 12 months, whereas Toyota has claimed efficiency enhancements from solid-state batteries that would enter manufacturing by the center of the last decade.