The U.S. Department of Energy's Vehicle Technology Office released a study on electric vehicle batteries on August 10.

New research shows that electric car batteries are now 90% cheaper than they were 16 years ago, in 2008.

Accordingly, the cost of a battery pack has dropped from $1,415/kWh in 2008 to $139/kWh in 2024.

These figures are based on data from light electric vehicles with sales of at least 100,000 units per year.

Thus, an electric car with a battery of about 40 kWh, the price of the battery 16 years ago was 56,600 USD, then that battery block currently costs only 5,560 USD, 10 times cheaper.

More specifically, the 81 kWh battery pack of the Tesla Model Y would have cost $114,615 in 2008, but the current price is only about $11,259.

Cheaper battery prices will help electric car makers reach price parity with internal combustion engine vehicles.

In addition to cost, other battery factors such as size, weight, and charging time also gradually decrease, due to increasing charge density.

Thanks to improvements in battery technology and chemistry, especially many inventions in charging technology also help to prolong battery life.

A study by market analysis firm Gartner predicts that the cost of producing each electric car will be cheaper than a gasoline car of the same size by 2027.