A recent study by investment bank UBS has suggested that the costs of manufacturing EVs and fossil fuel cars could be about the same by 2024, after studying battery construction from the world’s seven biggest car manufacturers.
In brief, UBS said that the big problem so far has been that a lot of major manufacturers have been reluctant to lean hard on EVs, as the increased cost of EV batteries means that at time of writing, it’s still more expensive to build an electric car over the petrol one. But carmakers like Tesla and Volkswagen, who are firmly pushing ahead in EV expansion, are moving the market forward whether the rest of the industry likes it or not. It’s already decreasing as battery development is picked up across the world, technology advances and a global system is put into place to mass manufacture these.
Because the battery really is the sticking point on this one. We don’t want to give the impression that the battery is the tricky bit and the rest of the car is basically a big metal shell with four wheels and a radio, but… well, there is some truth to that idea. Despite its size, an EV battery is between a quarter and two fifths of the car’s total creation costs, so knocking down the price of those will do a lot to change production expenses.
And that is undoubtedly a good thing. The cheaper electric cars cost to build, the more likely they are to drop in price, and therefore the more likely they are to be picked up by consumers. So when they cost as much as a normal car… well, then there’s no contest at that point, really. When given two options, why pick the one that’ll happily keep choking the planet to death?