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Longer for less

Longer for less

26-11-2021 | Daily sketch

While supply chain bottlenecks and strong demand have driven up the price of nearly everything this year, innovation and economies of scale continue to drive down a key cost component of electric vehicles (EVs): the battery. Over the last decade, the cost of EV battery packs as measured by the US dollar per kilowatt hour has fallen at a compound annual rate of 19.4%, according to Bloomberg New Energy Finance. Reduced battery prices coupled with other process improvements have enabled automakers to greatly improve both the affordability and the range of EVs. Innovations from material mix to the development of solid state batteries promise to improve range and reduce prices even further.

Source: Bloomberg New Energy Finance, September 2021

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