Battery prices are falling, so why are electric cars still so expensive?
3 days ago
- #transportation
- #climate-change
- #electric-vehicles
- Electrifying transport could save 1.5 billion tonnes of carbon emissions annually.
- EVs remain unaffordable for most people, with price being a major barrier.
- EV adoption targets: 20% by 2030 and 43% by 2035 in the EU.
- Supply-side policies include tightening emissions standards and banning combustion-engine vehicles.
- Demand-side policies include tax exemptions and incentives for EV buyers.
- Despite falling battery costs, EV prices in the US have risen by over 50% since 2011.
- Battery costs now account for only 16% of an EV's price, down from 58% in 2011.
- EVs are often seen as luxury items, but manufacturers are still losing money on them.
- Geopolitical and supply-chain issues don't fully explain long-term EV price trends.
- China offers cheaper EVs due to subsidies, lower production costs, and competition.