Manufacturing, autos and logistics
Battery pack cost
The cost of an electric vehicle's battery pack, usually quoted per kWh of capacity.
Facts checked against sources onWhat does Battery pack cost mean?
Battery pack cost is the cost of the complete battery pack in an electric vehicle (cells plus casing, cooling and electronics), quoted per kilowatt-hour (kWh) of storage. It is the biggest single cost difference between electric and petrol cars. BloombergNEF's yearly survey has tracked a long fall in average pack prices, to about 108 US dollars per kWh across all uses in 2025, and slightly below 100 for electric car packs. Example: a 60 kWh pack at 108 per kWh costs about 6,480; at 80 per kWh it would cost 4,800, a saving of 1,680 per car. A level of about 100 per kWh is often cited as a rough point where EVs can cost the same to make as petrol cars. Cell chemistry, such as lower-cost LFP (lithium iron phosphate), and scale drive the cost down.
Where does it come up in case interview prep?
- How the automotive industry works: OEMs, suppliers and dealersLesson in Automotive and electric vehicles
- Car economics, electric vehicles and the automotive supply chainLesson in Automotive and electric vehicles
- Automotive players, EV adoption by region, trends 2024 to 2026, and how to crack the casesLesson in Automotive and electric vehicles
Related terms
- Vehicle platformA shared set of engineering underpinnings used for many car models.
- Economies of scaleCost per unit falls as volume rises.
- Unit economicsThe revenue and cost of one unit: one product, order or customer.
- OEM (original equipment manufacturer)In autos and machinery, the company that designs, assembles and brands the final product.
- Tier 1 supplierA supplier that sells complete parts or systems directly to the carmaker.
- Installed baseThe number of a company's machines or systems currently in use at customers.
- AftermarketParts, service, repairs and upgrades sold after the original equipment.
- Backlog (order book)The value of orders a company has received but not yet delivered.
Spotted something wrong or out of date? Report a mistake. We check every report and correct the page.