The road to electric vehicles with lower sticker prices than gas cars – battery costs explained
Electric vehicle sales have grown exponentially in recent years, accompanied by dropping prices. However, adoption of EVs remains limited by their higher sticker price relative to comparable gas vehicles, even though overall cost of ownership for EVs is lower.
EVs and internal combustion engine vehicles are likely to reach sticker price parity sometime in the next decade. The timing hinges on one crucial factor: battery cost. An EV’s battery pack accounts for about a quarter of total vehicle cost, making it the most important factor in the sales price.
Battery pack prices have been falling fast. A typical EV battery pack stores 10-100 kilowatt hours (kWh) of electricity. For example, the Mitsubishi i-MIEV has a battery capacity of 16 kWh and a range of 62 miles, and the Tesla model S has...
