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[News] Declining Battery Costs to Drive Electric Vehicle Market Share to Two-Thirds Globally by 2023
Report to China Times, due to the declining cost of batteries, by 2024, the prices of electric vehicles (EVs) in Europe will be on par with those of gasoline-powered cars, while the American market will have to wait until 2026. Furthermore, it’s projected that by 2030, two-thirds of all cars sold globally will be electric vehicles.
A report released on the 14th by the non-profit organization Rocky Mountain Institute (RMI) predicts that battery costs will be cut in half over the next decade. This reduction will bring the cost of batteries down from $151 per kilowatt-hour (kWh) in 2022 to a range between USD 60~90.
According to TrendForce, in 1H23, the total sales of new energy vehicles (NEVs, including BEV, PHEV, FCEV), including pure electric vehicles, plug-in hybrid electric vehicles, and hydrogen fuel cell vehicles, reached 5.462 million units, by YoY of 33.6%. Specifically, NEV sales in the second quarter amounted to 3.03 million units, up 42.8% YoY, and accounting for 14.4% of the overall automobile sales in the second quarter.
Price-wise, TrendForce believes that when the cost of pure electric cars falls below approximately USD100 per kWh, there will be an opportunity to compete with gasoline cars.
By 2030, electric vehicle prices will finally match those of gasoline cars. The high cost of EV batteries, which accounts for approximately 40% of the price of electric cars, has been a barrier preventing many consumers from affording electric vehicles. RMI points out that automakers are investing in the development of new battery chemistries, materials, and software to improve electric vehicle efficiency, gradually driving down both battery and electric vehicle prices. RMI analysts suggest that as electric vehicles rapidly grow in popularity in Europe and China, EV sales could increase at least six times by 2030, with a global market share of 62~86%.
