Worldwide: Research by Bloomberg New Finance indicates that falling battery costs will mean electric vehicles (EVs) will be cheaper to buy in the US and Europe as soon as 2025.
The research firm added that batteries currently account for about half the cost of EVs, and their prices will fall by about 77 percent between 2016 and 2030.
“On an upfront basis, these things will start to get cheaper and people will start to adopt them more as price parity gets closer,” said Colin McKerracher, analyst at the London-based research firm.
Renault, maker of the Zoe electric car, predicts total ownership costs of EVs will by the early 2020s equal conventional internal combustion engine vehicles, according to Gilles Normand, the French company’s senior vice president for electric vehicles.
Mr Normand added that there were two curves: “One is EV technology cost reductions because there are more breakthroughs in the cost of technology and more volume, so the cost of EVs will go down. Internal combustion engine vehicles are going to go up as a result of more stringent regulations especially regarding to particulate regulations.”