In 2008, batteries cost $1,355 per kilowatt-hour, and the goal of an $80/kWh EV battery seemed ridiculous. But today the cost of EV batteries is dropping within shouting distance of that $80 goal, pulling the total cost of EV ownership down with it.
The total cost of EV ownership over time, including fuel and maintenance, has been close to, or at parity with, comparable gas automobiles for many years. The deciding factors for specific vehicles vary, but drivers in the US are owning their cars for longer periods — they hit a record average of 12.5 years in 2023 — so that long-term fuel and maintenance savings advantage for EVs can tip the balance.
Even with the total cost advantage and an assist from tax credits, getting prospective EV buyers over the hump of higher upfront costs has been a challenge. The high cost of EV batteries has been the main sticking point
According to a new analysis from Goldman Sachs, Global average battery prices declined from $153 per kilowatt-hour (kWh) in 2022 to $149 in 2023, and they’re projected to fall to $111 by the close of this year. They even could fall towards $80/kWh by 2026.
Source: Clean Technica: Read The Article
PSR Analysis: If this is true, it would be great news for anyone purchasing an electric powered vehicle since the battery pack is a significant cost component of any EV. However, over the next few years there is expected to be a gap between available supply of lithium and demand. New lithium sources are being found and developed; however, these can take up to a decade to come to fruition. PSR
