Electric vehicles may become as cheap to manufacture as ordinary, gas-fueled cars as early as 2024. That is according to a new market study from investment bank UBS. The report, detailed earlier today, is pretty convoluted content-wise, as is to be expected from anything covering such a complex topic.
However, the gist of things is that battery industry trends suggest the most expensive component of EVs – batteries, duh – will become cheap enough for this to happen within four years. Manufacturing costs and related vehicle prices are the only advantage that cars with internal combustion engines still hold over EVs. With battery prices continuing to drop, the transportation industry will be ripe for a full-blown revolution that Tesla has been promising for over a decade by now.
Even if UBS’s prediction doesn’t come true, it illustrates how EVs are on course to reach price parity with their ICE rivals very soon. The next milestone on this quest, $100 per kWh, is expected to be hit come 2022, as per the same source. In other words, your next vehicle purchase should really be electric as nothing else is going to make any economical sense in the very near future. Like, 2024-levels of “very near.”