Battery costs have declined by 99% in the last three decades, making electrified transport a reality

Over 20 million electric cars were sold globally in 2025. Most of these cars sold for around $40,000, but some are now as cheap as $10,000.1

Even just two decades ago, these prices and sales figures would have been impossible. That’s because the batteries were far too expensive.

The chart below shows the decline in lithium-ion battery cell prices since 1991. Note that this is shown on a logarithmic scale.

The price declined by more than 99%. In 1991, lithium-ion batteries cost around $9,200 per kilowatt-hour — 33 years later, they cost just $78.

Let’s put that in perspective. The battery cells you’d find in a standard electric car today, which give around 220 to 250 miles (350 to 400 kilometers) of range, cost around $5,000.2

Just a decade ago, this would have cost over $20,000, as much as many would pay for the entire car itself. And back in 1991, almost $600,000.3

What’s promising is that the drop in prices continues: they’ve fallen by a third in just the last few years.