Could plummeting battery costs deliver mass market EVs as soon as 2024?

Electric vehicles could reach cost-parity with petrol and diesel cars

Michael Holder
clock • 4 min read
Plummeting battery costs could lead to EVs reaching cost-parity with petrol and diesel cars within three years | Credit: Tesla
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Plummeting battery costs could lead to EVs reaching cost-parity with petrol and diesel cars within three years | Credit: Tesla

Electric vehicles (EVs) could be on track to reach cost-parity with fossil fuel cars within three years thanks to rapid strides in battery development worldwide, according to a new report from BloombergNEF (BNEF).

The influential clean tech analyst estimated that the cost of a lithium ion battery pack - the key component for EVs and home energy storage systems - now stands at $132 per kilowatt hour (kWh) in 2021, having fallen 6% over the past year alone. Overall, that means average battery pack costs have dropped 89% since 2010, and further cost reductions are expected that should help drive EV demand worldwide by ensuring battery cars to become far more affordable for the average consumer. The key price point for battery packs to become cheap enough for manufacturers to produce mass market EV...

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