Will EV battery prices drop in 2030?
As countries and businesses scramble to tackle urban smog and meet the ambitious climate goals set by the Paris Agreement, calls to promote electric vehicles are growing. In September last year, British MPs asked to start a study of the electric vehicle market to explore the necessary infrastructure and to try to determine whether to bring forward the 2040 deadline to stop selling petrol and diesel cars.
According to the Green Alliance report, through a series of incentive measures, the UK is expected to reduce the auto trade deficit by 5 billion pounds (about 7 billion US dollars). The World Wildlife Fund said an early phasing out of diesel and gasoline vehicles would add 14,000 jobs to the auto industry. Both groups are urging the UK to bring forward the ban on the sale of fuel-powered cars to 2030, according to a separate report this week.
As one of the most polluted countries in the world, the Chinese government is implementing production targets aimed at boosting sales of electric vehicles, seeking to lead the world in the popularization of electric vehicles, the report said. Billionaire Li Shufu, founder of Zhejiang Geely Holding Group Co, bought a 7.3 billion euro ($9 billion) stake in Daimler AG last month. Electric vehicle battery prices are expected to drop by 67% by 2030, driven by technology and market demand.
Analyst Colin McCollacher said sales of electric vehicles will continue to grow in the next few years, but battery prices will need to fall further to achieve true mass market adoption. If the cost of battery materials continues to rise sharply, it could delay the inflection point at which EV prices become comparable to gasoline-powered vehicles.
