Electric Car Battery Prices Have Been Falling Since 2013

Increasing and expanding production has made the price of batteries for electric vehicles increasingly cheaper. Data from Bloomberg NEF shows that electric battery prices have fallen by 80% from 2013 to 2020.

In 2010, the price of electric batteries could reach US$668 per kilowatt hour (kWh). In 2020, the battery price was US$137 per kWh.

Bloomberg NEF estimates that this battery price could fall further to US$103 per kWh in 2023. With battery prices that low, the price of electric vehicles can directly compete with gasoline-powered vehicles even without government incentives or subsidies.

This continuous decline in battery prices is due to the increasing number of orders, the increasing sales of battery-based electric vehicles, and more efficient battery designs.

In Indonesia, the Institute for Development of Economics and Finance (Indef) shows that the price of battery-based electric vehicles is still more expensive compared to the price of gasoline-powered vehicles of the same class.

For example, cars from Korean manufacturers are still priced at around Rp600 million. This price is higher than the price of gasoline-powered cars from Japanese manufacturers, which are priced at around Rp500 million.