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Replacing an electric car’s battery will soon cost less than repairing a petrol car’s engine, new research claims. This is one of the most prominent arguments that combustion engine proponents use to refute the efficiency of electric vehicles.
Recurring found that by 2030, the cost of electric vehicle batteries and where they are headed in terms of pricing will quickly replace an entire package for less than a gas engine repair.
This is supported by the projected cost of batteries for electric vehicles in a new study by Goldman Sachs. The firm said battery prices are forecast to reach $80 per kilowatt-hour (kWh) by 2026, roughly half of what they cost in 2023.
The cost of electric car batteries has halved in just three years, but the movement could continue to work in favor of consumers and electric car drivers. This continues to be reported by Goldman Sachs their projected cost of the batteries is $64/kWhbut some, such as RMI, have costs as low as $32/kWh.
A report from Recurrent states:
Goldman Sachs October 2024 Report puts the approximate price of packaging in 2030. at the level of $64 per kWh. Compared to other estimates, this number is high. In January 2024, the industry leader RMI is estimated cell price in 2030 is $32-54/kWh, or $45-65/kWh per package. However, during 2024, CATL began offering LFP cells starting at $56/kWh, followed by BYD. This summer, a Clean Energy Associate predicted that the global lithium-ion battery market will remain crowded until 2028, meaning even lower-than-expected prices.”
The study continued:
“This puts the cost of the package at or below $50/kWh. For a huge 100 kWh unit, the replacement cost can be $4,500-$5,000, or $3,375 for a more standard 75 kWh unit. It’s on par with an engine swap!”
In effect, this will mean that the cost of replacing an EV battery pack will drop to 30 percent of what it was in 2020.
Goldman Sachs in its report describes in detail the reasons for the drop in prices per kWh:
“The price of battery metal continues to fall. This includes lithium and cobalt, and almost 60% of the cost of batteries from metals. …About more than 40% of the drop is just from lower raw material costs because we had a lot of green inflation during 2020-2023.”
The electric vehicle sector is still young, but encouraging research showing that replacement battery prices are falling is important news for both companies and consumers.
Companies can probably count on these price cuts to increase sales and start seeing them return of its huge investment in electric cars. In the meantime, consumers will be less tired of the expensive task of replacing the battery.
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