Battery economics and total cost
Cost per kWh, replacement risk and residual values.
You'll learn
- Explain battery economics and total cost at engineering level
- Read the numbers that define the behaviour
- Apply the idea to a real pack
Overview
Pack cost fell from over 1,000 to well under 100 dollars per kWh in fifteen years. That single curve explains most of the EV transition.
In depth
~$1,100/kWh
Packs dominate vehicle cost.
~$300/kWh
Mass-market EVs become plausible.
~$150/kWh
Price parity is discussed seriously.
Under $100/kWh for LFP
Cheap chemistries reach parity in several segments.
Calculator
Charging Cost Calculator
What a session costs at the wall, including charging losses.
kWh
% SOC
%
per kWh
Energy into pack
36.0kWh
Energy billed
40.0kWh
Session cost
4.80
Formula
cost = capacity × ΔSOC ÷ 100 ÷ efficiency × priceYou pay for energy measured at the meter, not the energy that reaches the cells. Dividing by efficiency accounts for the difference.
Example: 60 kWh × 60% ÷ 0.9 = 40 kWh billed. At 0.12/kWh overnight that is 4.80.
- AC home charging is typically 85–92% efficient end to end; DC rapid is 92–96%.
- Some public networks bill by time, which penalises cars that taper early.
- Compare against fuel using cost per 100 km, never cost per fill.
Key takeaways
Remember this
- Pack cost per kWh dropped roughly tenfold in fifteen years.
- LFP is driving the current cost floor.
- Module-level repair reduces replacement risk.
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