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The conversation around battery costs should not solely focus on price but also consider improvements in energy density. As energy density continues to increase—historically improving nearly every year—the size of necessary battery packs is expected to decrease. By 2030, estimates suggest that a standard EV might only require a 50 kWh battery, which complements advancements in efficiency.
Goldman Sachs points to decreased costs in battery materials, particularly lithium and cobalt, as key drivers for falling prices. Post-pandemic, many of the green inflationary pressures have begun to recede, enabling more favorable conditions for battery manufacturers.