Battery powered vehicles may cost more than their petrol and diesel counterparts, but that may not be the case by 2030 as suggested by MIT Technology Review.
Tesla may be at the forefront of everyone’s mind when it comes to large gigafactories, but other companies are catching up and Daimler has started constructing a 500 million-euro factory of their own earlier this week. Located near Berlin, the factory will produce lithium-ion battery packs for future electrified vehicles released under the automotive corporation. More gigafactories are expected to be constructed across Europe in the years to come and China is in the process of building no less than nine large battery factories.
According to Bloomberg, international battery production could more than double between now and 2021. By 2030, we could see electric vehicle prices drop low enough to undercut cars using internal combustion engines. Even compared to 2012 battery prices have seen a significant drop on a per-kilowatt-hour basis, from $542 in 2012 to around $139 this year.
“As battery costs fall and their energy density increases, we could see cheaper battery-electric cars than their fuel-burning equivalents by 2030,” said Nikolas Soulopoulos, an analyst with the London-based research arm of Bloomberg LP.
Production cost of lithium-ion battery packs are expected to drop around 43%, making electric cars more affordable and mainstream.