European share increases

E-car battery prices fall below magic threshold

(Bild: Mercedes-Benz)

Seven out of ten e-car batteries ever built come from China. However, Europe is also likely to gain market share in the medium term, says the International Energy Agency.

High demand and falling prices: The battery market has developed positively in 2024. China is the main beneficiary of this, according to a study by the International Energy Agency (IEA). According to the study, global demand for battery capacity exceeded one terawatt hour for the first time last year, 85% of which was used in electric cars.

At the same time, the average price fell below the 100 dollar per kWh mark at battery pack level, driven primarily by cheaper raw material prices, such as for lithium, as well as technical advances in production. According to the study, the sharpest fall in costs was in China, where cells are now 20 to 30 percent cheaper than in Europe.

China also remains the most important producer, holding a market share of more than 75 percent last year. The country's position in e-car batteries is particularly strong: 70 percent of all vehicle batteries ever produced come from the Middle Kingdom.

This dominance is likely to decline in the medium term, at least on the European market. The IEA expects China to have a market share of 38% in the EU by 2030. 27 percent of storage batteries will then come from Europe, 21 percent from Korea and 9 percent from US companies.