A recent study predicts that the price for electric vehicle
batteries could drop by as much as 70 percent within the next 13 years.
Lithium-ion batteries are among the most expensive components of electric
vehicles. With the predicted reduction in manufacturing costs of these
batteries the price of electric vehicles may begin to fall in line with
internal combustion vehicles.
A large barrier in the adoption of electric vehicles is the
price tag difference over comparable internal combustion vehicles. Many see the
high upfront cost of electric vehicles and find it difficult to see the savings
of fuel over several years or do not wish to wait, up to a decade in some cases,
for the return on their investment. This barrier instantly goes away if the findings
in this study come true and we do see a large drop in battery prices as electric
vehicles will be the cost effective purchase from day one.
Two forces driving the decrease in EV battery prices is manufacture
on a large scale and breakthroughs in the production methods used to assemble
these batteries. With gas prices continuing to rise, electric vehicles are
becoming a more attractive option. This leads to the need to produce these
batteries on a large scale and will in turn lower the price for consumers. Not
only are prices on the decline, but the life of these batteries are longer than
ever. By the year 2025 electric vehicles very likely will no longer be out of
reach of many consumers’ budgets.