EV’s could cost similar to ICE vehicles. The price of EV batteries is decreasing and soon we will be able to buy EV’s that will cost close to the value of internal combustion engine vehicles.
Several years ago, an electric car’s lithium-ion battery pack cost about $1,110 per kilowatt-hour. Now according to the information put out by BloombergNEF, the cost has plummeted by 89% to $137 per kilowatt-hour. And by 2023, we can expect that the cost is going to decrease and allow car manufacturers to truly start pricing EVs at price parity with ICE vehicles. Since the battery pack is the most expensive component of the EV, it contributes 30% of the overall cost to the customers.
BloombergNEF report found that some EV batteries have dropped to approximately $100 per kilowatt-hour in China. This is the price that analysts predict for the market to hit broadly by 2023 or 2024. As Logan Goldie-Scot says, “Within four years, major automakers should be able to produce and sell mass-market electric vehicles at the same price and with the same margin as internal combustion engine equivalents”.
So, these days EV’s are cheaper than conventional cars. They need less maintenance and electricity costs less than fuel. Also, some of the luxury EV’s with their luxury gas counterparts are already in price-parity. And since the price of EV batteries is decreasing it will get more common without any subsidies. In addition, if any developments in battery technology arise, the cost can decrease even more.
EV’s could cost similar to ICE vehicles