Reuters reports that, according to the latest research from the Rocky Mountain Institute (RMI), due to declining battery prices, the cost of electric vehicles may equal that of conventional gasoline vehicles by 2024 in Europe and by 2026 in the US. By 2030, electric vehicle sales are expected to make up approximately two-thirds of global total car sales.
RMI's research suggests that battery costs will halve over the next decade, dropping from $151 per kilowatt-hour in 2022 to between $60 and $90 per kilowatt-hour. "By 2030, the price of electric vehicles will be as affordable as gasoline cars in every market for the first time, and their operational costs will be even lower." It's noted that battery prices currently account for about 40% of the total cost of electric vehicles.
Meanwhile, RMI's Senior Director, Kingsmill Bond, told Reuters that automakers are heavily investing in new battery chemistries, materials, and software to produce more efficient electric vehicles, hence the steady decline in battery prices.
Furthermore, based on RMI's analysis, the rapid growth of electric vehicle models in Europe and China "implies that by 2030, electric vehicle sales will increase at least sixfold, capturing a market share of 62% to 86%." Compared to the same period in 2022, electric vehicle sales in the EU grew by nearly 61% in July of this year, accounting for 13.6% of total car sales. The EU plans to ban the sale of conventional gasoline cars starting from 2035.
