When Will the Cost of Electric Vehicles Decrease?
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Price drops are coming for individuals who want to own an electric vehicle, well definitely wants to know that When Will the Cost of Electric Vehicles Decrease?
Major Key Points About When Will the Cost of Electric Vehicles Decrease
1. The demand for electric vehicles will probably be fueled by subsidies.
2. When production is at its highest, businesses must compete for clients, which lowers prices.
3. Innovation has historically been aided by competition, which also drives down prices.According to estimates from Kelley Blue Book, the average cost of an electric vehicle (EV) in the United States was $66,000 in June. However, this is not the full picture. The cost is high for a number of reasons, inflation being one of them.
Simply noted, everything’s cost has increased, even EVs. Additionally, almost all EVs are brand-new automobiles, which have higher sticker prices in any case. So, when can we anticipate a decrease in the price of EVs? Here are three contributing elements.
1. Demand
Industry analysts predict that prices will decrease as EV demand grows. By 2025, analysts predict that the cost of EVs and gas-powered automobiles will be roughly equal. As more EVs are produced, their production costs will decrease. Some experts predict that in a few years, they will be even less expensive to create than their gas-powered equivalents.
Subsidies are one thing that could increase demand. More drivers will consider buying an EV as states and the federal government promise to discount the price of doing so. And it’s at that point when EV demand lowers the cost.
Manufacturers will need to maintain their competitiveness in order to attract drivers to their automobiles. After all, having a car requires a large financial investment due to the monthly payment and auto insurance.
2.Lithium-ion batteries are
Despite the fact that lithium batteries were created in the United States, production subsequently shifted abroad. We depend on other nations to supply us with lithium batteries, so when their operations were disrupted by COVID-19, it was evident that we were in trouble.
Two recent innovations aim to reduce our reliance on EV batteries made in other nations. The first is the Strategic EV Management Act, which aims to maximise the recycling of EV batteries for vehicles used by the federal fleet. Instead than relying on the global market for more EV batteries, the bipartisan bill aims to promote recycling and reuse.
Additionally, the U.S. Department of Energy has announced financing totaling over $3 billion for the production of our own battery components. In addition to opening new manufacturing facilities, a number of well-known businesses have revealed plans to increase their operations in the United States.
The powertrain, which includes the battery, accounts for about under half of the price of an EV. The price of the battery is mostly determined by the cost of lithium-ion battery cells. The good news is that, according to a study by Micah C. Ziegler and Jessika E. Trancik published in Energy & Environmental Science, the cost of these batteries has decreased by 97% since 1991.
It’s anticipated the pattern will persist. According to Treehugger, for instance, Ford intends to reduce the cost of its batteries by 40%, and GM anticipates a 60% decrease in cost. And perhaps, such price cuts will result in EVs that are affordable.
3. Creativity
Innovation is one of the benefits of competition. Automakers will want to remain at the forefront of technology as they compete for new customers, consistently finding more efficient ways to complete tasks. It’s likely that this may spark advancements in lithium-ion batteries that lower their price even further. After all, the manufacturer will make a larger profit if the cost of producing an EV is lower.
It might be useful to keep in mind that the least costly model with a 12-inch screen cost $445 when the first commercially produced television was introduced in 1938. That is more than $8,000 in today’s dollars. Prices decrease as demand rises and technology develops.
Conclusion
Even though it seems like price cuts won’t happen right now, it’s still a nice thing to know they’re coming. The amount that the typical American household will save on gasoline prices makes the deal much sweeter.
According to Union Transport Minister Nitin Gatkari, electric vehicles will be as affordable as gasoline automobiles in India by 2023. These remarks were given by the minister during a recent awards ceremony on November 1st.
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When Will the Cost of Electric Vehicles Decrease? 3 Strong Key Points
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