Battery prices, which were above $1,100 (£846.4) per kilowatt-hour in 2010, have fallen 87% in real terms to $156/kWh (£120) in 2019.
By 2023, average prices will be close to $100/kWh (£76.95), at which point EVs will start to reach price parity with internal combustion engine vehicles, according to the latest forecast from research company Bloomberg New Energy Finance (BNEF).
The firm credits reductions in 2019 to increasing order size, growth in battery electric vehicle sales and the continued penetration of high energy density cathodes.
The introduction of new pack designs and falling manufacturing costs are expected to drive prices down further in the near future.
James Frith, BNEF’s Senior Energy Storage Analyst, said: “According to our forecasts, by 2030 the battery market will be worth $116 billion (£89bn) annually and this doesn’t include investment in the supply chain.
“However, as cell and pack prices are falling, purchasers will get more value for their money than they do today.”