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.
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.