2024-08-15 00:36:57
Electric cars are certainly cheaper to produce than they were 15 years ago. A new study by the US Department of Energy’s (DOE) Office of Vehicle Technology indicates that the cost of electric vehicle batteries will drop by a whopping 90 percent between 2008 and 2023, making it easier for automakers to overcome the price difference between cars with internal combustion engines and electric cars.
One of the most important factors in the production of electric vehicles is the size, weight and cost of the battery. Batteries have steadily become cheaper in recent decades thanks to improvements in battery technology and chemistry, new manufacturing processes, and significant increases in production volume.
According to the DOE, the price of a lithium-ion battery has fallen from $1,415/kWh in 2008 to $139/kWh in 2023. The estimates include light-duty vehicles with production of at least 100,000 units per year. By comparison, the Tesla Model Y’s 81 kWh battery cost $114,615 in 2008, compared to just $11,259 in 2023.
Automakers expect battery costs to continue to drop over the next few years, making affordable electric cars a reality.