Friday, June 17, 2016

EV battery prices are expected to drop 2-4 times in next six years

IEA's report states that the year 2015 saw the global threshold of 1 million electric cars on the road exceeded, closing at 1.26 million. In 2014, only about half of today's electric car stock existed. 2015 also saw more than 200 million electric two wheelers on the road,and 170 000 buses, primarily in China.
But there are more than 1 billion gasoline- and diesel-powered cars on the world's roads and their number will be growing fast along with China and India's economies. So, there is a long way to go...
Falling battery costs are among major drivers for electrical vehicles industry growth, Since batteries make up around one-third of the price of electric vehicles, getting this number down even further is crucial. The U.S. DOE estimates that battery costs need to fall to $125 per kilowatt-hour by 2022 to achieve cost-competitiveness with conventional vehicles. Manufacturers like Tesla and GM have set even more ambitious cost targets - around $50 per kilowatt-hour.