Faster than expected: The prices of electric cars are falling
What was announced in the auto industry is happening, but faster than the estimates – the prices of batteries are falling rapidly, which is also bringing down the prices of electric cars.
Factors driving the 51 percent drop in battery cell prices include falling prices for raw materials such as lithium and lower-than-expected demand for electric cars.
The result is already felt in China – electric cars now have prices at the level of gasoline cars or even lower, and significant reductions in the prices of electric cars are also going to the European continent.
Namely, many cheaper electric cars will appear on the market in 2025 and 2026.
Global demand for lithium-ion batteries in 2023 was recently estimated at approximately 950 gigawatt hours, while global production capacity, mostly in China, is twice that figure.
Efforts in the West to develop battery production capacity to match China will only exacerbate the overcapacity problem, analysts predict.
The low prices will last
This is good news for consumers, BloombergNEF reports, and Revija HAK reports, which calculates that lower prices will be reflected in cheaper models of electric cars whose production is planned for the next few years.
While lower prices for electric vehicles are commonly thought to be boosting demand and therefore leading to a recovery in global battery prices, Bloomberg’s analysis suggests there are other factors at play that point to lower prices for some time to come.
The most important thing, they believe, is the fact that Chinese companies and other manufacturers continue to invest large sums in research and development, automated production and new factories. BNEF expects that, as a result, low prices will be maintained for at least the next few years.
Source: Business diary
Photo: BIZLife
Source: bizlife.rs
