Will Electric Cars Get Cheaper? Yes, Here's When
Will Electric Cars Get Cheaper? Yes, Here's When
Posted on May 1, 2023
One of the main problems with electric vehicles is the price. While range and reliability are both factors, it’s the price difference between an electric and a gas-powered vehicle that’s the main barrier.
So, will electric cars get cheaper? Yes, in fact they already have and it looks like things are going to stay this way.
There are several reasons for this, which we will outline in brief below.
If you’re in the market for an EV, ranges have never been as long and, with rising gas prices, it has never been a better time to leave gas behind!
Batteries are Becoming Cheaper
Batteries are one of the most expensive elements of an EV. According to GM, it currently costs around $145 USD per kWh to manufacture batteries for EVs.
That is steadily reducing as production is becoming more efficient and we are continually refining how they are made.
It’s estimated that it will cost around $65 per kWh by 2025, with prices falling further after.
Developments in solid state batteries could make this point moot further down the line anyway.
Specifically, the replacement of graphite with silicon for anodes in EV batteries should help make the cost of electric cars come down because it's easier and much cheaper to build more powerful batteries.
That’s definitely something to look forward to when thinking about when electric cars will get cheaper!
Raw Material Production
Before the business in Eastern Europe, the price of raw materials was gradually reducing as supply began reaching pre-pandemic levels.
Unfortunately, Russia is a prime exporter of nickel, a key component in battery manufacturer.
The good news is that California has begun producing its own Nickel in the Salton Sea. If this is a viable, reliable source, prices could drop even further.
Manufacturing Efficiencies
With more people buying EVs, there can be more efficiencies met with manufacturing.
Automakers can afford to ramp up production and earmark more lines for building electric cars.
If there is less perceived risk in switching a line to electric manufacturing, that process becomes cheaper and more efficient, which results in lower prices, which increases demand, which lowers risk, which….
Price Parity and Electric Motoring
Companies converting classic cars like Porsche 911s of 1960s VW splitscreens, has convinced me that there is definitely a place for electric motoring.
Having driven an EV, I can personally attest to how quiet and smooth they are.
While I won’t be selling my own ICE car just yet, my next purchase will definitely be an EV. If you're looking for an EV, click here to learn more.
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