Battery production costs decreased by 90 percent in 15 years

Electric vehicle use is now more common than in previous years. One of the biggest reasons for this is that battery costs have decreased much more than before. As such, electric car prices are becoming more accessible to consumers.

According to a study conducted by the Vehicle Technologies Office of the US Department of Energy, the production cost of electric vehicle batteries decreased by 90 percent between 2008 and 2023. This allows manufacturers to reduce the price difference between internal combustion engine vehicles and electric vehicles.

The report in question covers passenger and light commercial vehicles with a production volume of at least 100 thousand units per year. Of course, when 15 years of inflation is taken into account, the difference is not that big. The original cost in 2008 drops to around $1,000 when evaluated according to current dollar value. Despite this, it is possible to say that the difference is impressive.

Automakers expect the decline in battery costs to continue over the next few years. According to market analysis firm Gartner, by 2027 the cost of producing electric vehicles will be less than internal combustion ones.

Share via Email
This is titled mail it to your friend.

This news our mobile application Download using
You can read it whenever you want (even offline):