EV Production Costs Set To Plummet
UBS has done some extensive research into the production costs of electric vehicles that the largest car manufacturers are making.
That is good news for a shift away from fossil fuel use, as many people have struggled to justify and even finance the additional costs of buying an electric car.
A report in The Guardian shared some reasons for the reluctant shift with many manufacturers.
“Big carmakers have been reluctant to shift production away from their profitable internal combustion engine models towards electric cars because of expensive batteries, which are almost exclusively made by east Asian companies such as South Korea’s LG Chem, Japan’s Panasonic and Chinese rival CATL. Batteries account for between a quarter and two-fifths of the cost of the entire vehicle.”
The expectation is that by 2022, the average production cost base difference will be down to $1,900 and completely disappear by 2024.
This will also be good news for hybrid vehicles where the batteries are driving up the prices considerably and causing many people not to make the right choice for our environment.