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Electric cars will be cheaper than conventional cars by 2022, new report predicts

A new report, produced by analysts from Bloomberg New Energy Finance (BNEF), has predicted that electric cars (EVs) will be cheaper to own that conventional cars by 2022 and that they will represent a little under 40% of all vehicle sales by 2040. 

Licensed under CC - credit Flickr user: einstraus
Licensed under CC – credit Flickr user: einstraus

Currently just 1% of all new cars sold are electric with cost of EVs still proving to be a significant barrier. However, the latest BNEF analysis predicts that the total cost of ownership, which takes into account both purchase price and running cost – of electric vehicles will dip below internal combustion engine vehicles, even if fuel efficiency is improved by 3.5% every year.

At the core of the report is analysis of EV battery prices. Lithium-ion barry costs have dropped 65% since 2010 and the report predicts that a similar drop will be seen between 2016 and 2030, with prices falling from $350 per kWh to $120.

Projecting from these cost drops, the report expects that at least 35% of all car sales will be electric by 2040, with the possibility of the figure being as high as 50-60% in countries where governments invest in support infrastructure.

Source: Electric cars ‘will be cheaper than conventional vehicles by 2022’

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Seb Egerton-Read

Seb Egerton-Read

Seb writes daily content for Circulate across the full spectrum of the website's topics. Previously he has spent five years as a freelance writer for a number of websites and blogs. You can e-mail Seb at seb[at]circulatenews.org