Today electric cars and hybrids cost more than their gas-powered counterparts, but that could change as soon as 2025, according to a study by Bloomberg New Energy Finance. The study claims that by 2025 the cost of batteries will drop so much that buyers won’t have to pay more to buy an electrified car.
2025 is still almost a decade away, but even before that, the prices of electric cars are expected to continue to drop. Back in 2007 battery prices were as high $1,000 per kWh, but in 2014 the prices drop dramatically to around $300 per kWh. It’s expected that by 2017, the price could drop even lower to around $230 per kWh.
“In the next few years, the total-cost-of-ownership advantage will continue to lie with conventional cars, and we therefore do not expect EVs to exceed 5 percent of light duty vehicle sales in most markets – except where subsidies make up the difference,” said Salim Morsy, senior analyst and author of the Bloomberg study. “However, that cost comparison is set to change radically in the 2020s.”
This is all great news, since it means that in the next few years, more automakers will release more attainable electric cars, like the upcoming $30k Chevy Bolt.
All images @ Chevy and Nissan