People are likely to think twice before buying Electric Vehicles (EVs) because of their hefty price tags despite favorable factors like maintenance and ownership costs, tax credits, and environmental friendliness because of the manufacturers’ suggested retail prices (MSRP) that are often too high for most potential buyers.
However, in a promising update, Bloomberg has stated, based on its research, that the cost of EV batteries is likely to be significantly reduced within the next three years.
The cost per kilowatt-hour (kWh) is reportedly on a downward trend, and as per a new report shared by BloombergNEF (New Energy Finance), the market average is liable to be reduced to $ 101 per kWh by 2023.
Industry experts opine that at this kWh price point, the cost of EVs should match that of Internal Combustion Engine vehicles. Additionally, owing to the federal and state tax credits, buying EVs will be even cheaper than buying petrol-powered vehicles.
The report reveals that the massive production volume of the EVs due to the increased demand will probably result in a decrease in manufacturing costs because of the efficient use of materials, and new designing and development techniques.
The evolution of the industry could eventually result in EVs becoming a common sight on roads everywhere.
The report also predicts that if the rate of progress in this regard continues unhindered, the prices could decrease to $ 59 per kWh within the next ten years.
One of the promising prospects to ensure the decrease of prices is the development of solid-state batteries that will greatly decrease the production cost of the vehicles, albeit with an increase in performance and efficiency owing to their simple design.
The introduction of the EV policy in Pakistan has also occurred at the most opportune time as there seems to be a rapid shift toward perfecting the formula for developing affordable and sustainable EVs.