Lithium Battery Costs Drop, Electric Cars May Be Cheaper Than Fuel Cars In 2025
- Mar 28, 2018 -

Lithium battery costs drop,  electric cars may be cheaper than fuel cars in 2025

March 23 news, according to foreign media reports, if the cost of lithium-ion battery continues to decline, then by 2025 the electric car may be cheaper than the fuel car.

According to a report by Bloomberg New Energy Finance, some of the electric car models will soon be flat with the price of the fuel car in 2024 and will become even cheaper by 2025. The London-based research organization said on Thursday that it is necessary to promote this, taking into account that the metal demand contained in batteries continues to rise, and the price of battery packs needs to decline.

As countries and companies scramble to clean up urban smog and achieve the ambitious climate goals set by the Paris agreement, the demand for the promotion of electric vehicles is increasing. The U.S. MP started investigating the market in September last year to explore the necessary infrastructure and to try to determine whether to stop the sale of petrol and diesel cars in 2040 ahead of schedule.

According to the Green Alliance report, the UK is expected to reduce its auto trade deficit by 5 billion pounds (approximately US$7 billion) through incentive measures. The World Wildlife Fund says that the early phase-out of diesel and gasoline cars may increase the number of 14,000 jobs for the automotive industry. According to other reports this week, both organizations urged the United Kingdom to advance the time to prohibit the sale of fuel vehicles to 2030.

As the world's largest source of pollution, China is implementing production targets aimed at increasing sales, and hopes to take the lead in the global adoption of electric vehicles. Li Shufu, the billionaire founder of Zhejiang Geely Holding Group, bought Daimler’s 7.3 billion euros ($9 billion) stake last month.

Driven by technology and market demand, electric car battery prices are expected to drop by 67% by 2030

Bloomberg New Energy Finance said that the increase in mass production of lithium-ion storage batteries is expected to help push the price of batteries down to $70 per kilowatt-hour by 2030. In 2017, the average price of the battery pack was approximately $208 per kWh, which reduced the profitability of electric vehicles and accounted for about two-fifths of the total cost of such vehicles.

“The sales of electric vehicles will continue to grow in the next few years, but to achieve real popularity in the mass market, battery prices still need to further decline.” said Colin McKerracher, an analyst at Bloomberg New Energy Financial Transportation. "If the cost of battery materials continues to rise sharply, it may delay the arrival of electric car prices and fuel vehicles."