Monday, July 22, 2024

EV Batteries Will Be Significantly Cheaper by 2023

Despite favourable factors such as maintenance and ownership costs, tax incentives and environmental friendliness due to the proposed retail prices (MSRP) of the manufacturers, which are often too high for most potential buyers, people are likely to think twice before purchasing electric vehicles (EVs) because of their hefty price tags.

In an encouraging update, however, Bloomberg, based on its study, has reported that the cost of EV batteries is likely to decrease significantly over the next three years.

The cost per kilowatt-hour (kWh) is reportedly downward, and the industry average is likely to be reduced to $101 per kWh by 2023, according to a recent study published by BloombergNEF (New Energy Finance).

Industry experts agree that the cost of EVs could equal that of Internal Combustion Engine vehicles at this kWh price point. In addition, purchasing EVs would be much cheaper than purchasing petrol-powered vehicles because of the federal and state tax credits.

The report shows that due to the increased demand, the large production volume of EVs would likely result in a decrease in manufacturing costs due to the effective use of materials and new design and development techniques.

Eventually, the industry’s evolution will lead to EVs being a popular sight on roads everywhere.

The study also predicts that prices will decrease to $59 per kWh over the next ten years if the pace of progress in this regard continues unhindered.

The advancement of solid-state batteries is one of the promising prospects for ensuring price reductions, which would significantly reduce the cost of production of cars, but with an increase in performance and efficiency due to their simple nature.

The adoption of the EV policy in Pakistan has also taken place at the most opportune moment.

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