Electric vehicles, which tend to cost substantially more than their gasoline-fueled counterparts, will see their prices drop below those of their gas-powered counterparts by 2025, according to analysis by Bloomberg New Energy Finance.
The reason for this is simple: battery packs account for around half the total cost of today’s EVs, and their prices are expected to be slashed dramatically – by about 77 percent – between last year and the year 2030. As a result, battery packs will decline from representing between 48 and 55 percent of the cost of an EV, to 18 to 23 percent.
There’s also every reason to believe that as EV prices approach parity with gas-powered vehicles, sales will get an additional boost thanks to their lower refueling costs.
“On an upfront basis, [EVs] will start to get cheaper and people will start to adopt them more as price parity gets closer,” says Bloomberg New Energy Finance analyst Colin McKerracher. “After that it gets even more compelling.”
Granted, 2025 is still nearly a decade away; those hoping to hop in an EV as soon as possible have some waiting yet to do before that will more economical. In the meantime, new battery technologies are sprouting up that could supplant lithium-ion as the go-to chemistry, including a solid-state battery technology with thrice the energy density, developed by John B. Goodenough – the man that most credit with the creation of li-ion.