The future of electric cars is dependent on the prices of their petroleum counterparts. If the cost of lithium-ion continuous to fall then it electric car might become cheaper by according to a report by Bloomberg New Energy Finance.
The report indicates that few models might cost equivalent to the combustion engines as soon as 2024 and after 2024 might become cheaper.
The London based researcher pointed out that the prices to fall down, the battery prices have to go down irrespective of the demand rise for the metals that are being consumed in the units.
Electric cars may be cheaper than their petroleum counterparts by 2025 if the cost of lithium-ion batteries continues to fall.
Some models will cost the same as combustion engines as soon as 2024 and become cheaper the following year, according to a report by Bloomberg New Energy Finance.
For that to happen, battery pack prices need to fall even as demand for the metals that go into the units continues to rise, the London-based researcher said on Thursday.
The Paris Agreement has set the goal regarding the climate and that has been pushing countries to reduce emission and going green. This has enhanced the vigor to roll out electric vehicles.
The UK has started their inquiry in September into the electric vehicle market and started searching for the required infrastructure for the same. The lawmakers of UK are also trying to determine the 2040 deadline to end the sale of diesel and gasoline cars.
The World Wildlife Fund has indicated that extra 14,000 jobs could be added to the industry if diesel and petrol cars have to be phased earlier.
The Green Alliance also reported that with the help of incentives that the United Kingdom can lower its automotive trade deficit. Both of the above groups, in a separate group, urged Britain to bring forward the ban on petroleum fuelled cars to 2030.
China is also moving towards leading the world electric-vehicle adoption as the government is looking to implement production quotas aimed at the increase in the sale.
According to Bloomberg New Energy Finance, the electric car battery prices on technology and demand will set to slide 67 percent by 2030.
"Electric vehicle sales will continue to ramp up in the coming years but battery prices still need to decline further for real mass market adoption," said Colin McKerracher, transport analyst at BNEF. "If battery material costs keep rising sharply this could push back the crossover point."