Think EVs Cost to Much to Buy? Wait Seven Years And Things Could Change
【Summary】If prices for lithium-ion batteries continues to fall, electric cars could be a lot cheaper to purchase.
Electric cars are already much better than their counterparts that came out a few years ago. Great strides have been made in battery chemistry and quality to improve range and recharge times. And, when you look at the vehicles as a whole, the car's are just better overall packages. But there's one thing that's really holding electric cars back from overthrowing gasoline-powered vehicles — their price.
2025 Is The Magical Date
A report from Bloomberg, though, claims that electric cars could be cheaper than gas-powered machines by 2025 if the price of lithium-ion batteries continues to decrease. As automakers and companies move towards electric cars, demand for cobalt and lithium, two necessary components to make batteries, has skyrocketed. The scarcity of the materials could lead to a shortage and a potential blockade for battery-powered vehicles.
If, however, the two materials continue to be mined in a way that keeps prices down, electric vehicles could cost the same amount of money as vehicles with combustion engines by 2024. The outlet reports that prices for EVs would become cheaper the next year.
With major automotive markets, including Europe and China looking forward to adopting electric vehicles to help reach climate goals, demand for materials that are needed to build electric cars is rising. As the outlet states, the increase of companies and automakers mass manufacturing lithium-ion batters should drive prices down.
By 2030, the outlet believes that prices could hit $70 per kilowatt hour. That's a sharp decrease to what battery packs averaged last year at $208 per kilowatt hour. Since battery packs are the most expensive part of the vehicle, they dictate how much automakers can price the machines at. Cheaper battery packs mean cheaper cars.
"Electric vehicle sales will continue to ramp up in the coming years but battery prices still need to decline further for real mass market adoption," said Colin McKerracher, transport analyst at BNEF. "If battery material costs keep rising sharply this could push the crossover point."
Pricing Has Already Started To Decrease
Tesla, which was one of the first automakers on the scene to make usable electric vehicles, dropped the price off its offerings last year. Last April, Tesla dropped the price of its Model S by $7,500 to $69,500. It also did the same thing to the Model X, pricing the SUV at $79,500. Those prices, though, are still too high for the average consumer, which is a problem.
That, though, is where things like the Tesla Model 3, Chevrolet Bolt, and Nissan Leaf come into play. Those machines are affordable and while they don't boast the range of more premium offerings, they can be used as an alternative to a gas-powered car.
Interestingly, a poll that was conducted back in 2016 revealed that consumers wanted to see electric vehicles come down to $30,000. With battery technology improving day after day and prices set to decrease, that magic number could be achieved sometime in the very near future.
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
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