Tuesday, June 27, 2017

Electric Cars to Reach Price Parity by 2025

For the next 9 years, electric cars will be more expensive to produce than internal combustion engine vehicles, resulting in tougher competition for electric car manufacturers. In 2016, batteries were the largest cost in the manufacturing of electrical cars, making up 48% of total cost on average, but this is expected to decrease to 24% by 2026. This drop puts the cost of manufacturing for electric cars equal to the estimated cost of combustion vehicles at 2026. Battery costs are dropping at around 19% per doubling of manufactured capacity, and it is assumed that technological progress will allow for the same sustained rate. Base vehicle and powertrain costs, such as motors, for electrical vehicles are expected to drop as well due to simpler design and greater manufacturing volume. Because combustion vehicles must be created to meet fuel economy requirements, prices are expected to increase for their manufacturing. With these expectations, battery electric vehicles will be up to 15% cheaper than combustion vehicle counterparts by 2030. 

Image result for electric cars
by Nikolas Soulpoulos
Bloomberg News Energy Finance
For article and full report, click here.

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