Why 2025 battery storage prices fell so fast
According to industry analysis, the average battery pack price for stationary storage fell to about $70/kWh in 2025, a drop of roughly 45% from 2024, marking the steepest decline among all lithium-ion applications and making stationary storage the lowest-priced battery segment for the first time.
This drop came despite higher battery metal prices, driven by a combination of cell manufacturing overcapacity, economies of scale, cheaper components, and the accelerated shift to LFP chemistries, as well as a slowdown in EV sales growth that pushed more manufacturing capacity into the stationary storage market.
Regionally, average pack prices remain lowest in China, with North America and Europe still significantly higher due to local production costs and lower volumes, but the global trend is clear: grid-scale storage is becoming dramatically cheaper, very quickly.
Industry discussions in 2025 also shifted from pure CAPEX to the “true cost” of storage. Experts highlighted the need to clearly define a project’s use case (arbitrage, peak shaving, capacity, grid services), match those needs to usable energy under warranty, and understand who controls the full supply chain – from cell sourcing and DC blocks to AC blocks and integration.
BasenPower commentary: what falling prices mean for projects
From BasenPower’s perspective, these record-low pack prices are a double-edged sword:
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For developers and EPCs, cheaper packs open up projects that were marginal just a year ago – especially 2–4 hour systems for renewables integration and peak shaving.
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For asset owners and financiers, there is growing pressure to distinguish between “price takers” and “quality providers” in a crowded supplier landscape.
We see three practical implications for partners:
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Do not optimise only for $/kWh at the container level
Project economics depend on:-
usable energy over the warranty period,
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round-trip efficiency,
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auxiliary consumption (HVAC, controls), and
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realistic lifecycle O&M.
A slightly cheaper pack that degrades faster or comes with vague warranty terms can raise your LCOE and project risk.
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Supply-chain transparency is becoming part of due diligence
Banks and large off-takers increasingly ask: which cells, which factory, which integrator, which EMS/BMS? A robust, traceable supply chain – rather than unknown OEM hardware – is now a competitive advantage. -
Use the price window to upgrade, not to cut corners
As hardware becomes cheaper, project owners have a rare opportunity to upgrade safety, monitoring, and controls (better fire detection, advanced EMS, remote diagnostics) without breaking the budget.
At BasenPower, we treat the 2025 price crash as a chance to design more robust, bankable systems – not just cheaper ones – and to help partners turn low pack prices into higher project quality, not lower.