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Image Source: BMW Group

Image Source: BMW Group

Electric Cars May Be Cheaper Than Petroleum Cars In Seven Years

Worldwide: Electric cars may be cheaper than their petroleum counterparts by 2025 if the cost of lithium-ion batteries continues to fall, according to a report by Bloomberg New Energy Finance.

The expected increase in mass manufacturing of lithium-ion storage should help drive battery prices to as low as US$70 a kilowatt hour by 2030. Some models will cost the same as combustion engines as soon as 2024 and become cheaper the following year. For that to happen, battery pack prices need to fall even as demand for the metals that go into the units continues to rise.

“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 Bloomberg New Energy Finance. “If battery material costs keep rising sharply this could push back the crossover point.”

Battery packs averaged about US$208 a kilowatt hour in 2017, squeezing profit margins and representing approximately two-fifths of the total costs of electric vehicle, according to the report.

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