Electric vehicles have emerged as one of the most striking developments in the automotive industry in recent years. However, the high costs of these vehicles, especially battery prices, have been a significant barrier for consumers. A new study by the US Department of Energy’s Office of Vehicle Technologies (DOE) reveals significant progress in overcoming this barrier.
Significant Reduction in Battery Costs
According to the study, the cost of a 1 kWh battery was $1,415 in 2008, while as of 2023 it has dropped to $139. This indicates a massive 90% decrease and allows for a significant reduction in the production costs of electric vehicles. For example, the cost of an 80 kWh battery is currently about $11,120, which is affordable compared to before. 100 kWh batteries cost about $13,900. These reduced costs could make electric vehicles more accessible to broader audiences. Companies are aiming to offer electric vehicles at prices ranging from $35,000 to $40,000 using this cost advantage. The decrease in battery costs is a significant source of hope for the future of electric vehicles and encourages sustainable growth in the industry.