EV Battery Prices Falling
In two years, prices of electric SUVs will fall to levels similar to those of internal combustion vehicles in Korea, analysts say.
Global electric vehicle prices are expected to fall to a level similar to those of internal combustion vehicles as early as next year or 10 years at the latest, according to the KEPCO Management Research Institute's summary of Bloomberg NEF's New Energy Outlook 2020 Report. Electric cars will be able to secure price competitiveness because battery prices are falling.
The report predicts that lithium-ion batteries will cost US$61 per kWh in 2030, about half of US$132 per kWh in 2020. Battery prices fell to one eighth from 2010 to 2019 as demand increased, and prices may fall further with an increase in demand in the future.
In the United States and Australia, large electric vehicles and SUVs are expected to reach prices similar to internal combustion engines next year, and small and medium-sized electric vehicles are expected to secure price competitiveness in 2024.
In Korea, electric SUVs are expected to have price competitiveness against internal combustion vehicles starting from 2023, mid-sized cars starting from 2024 and small and large cars starting from 2026.
In addition, prices of electric vehicles will fall to a level similar to those of internal combustion vehicles in Europe from 2022 to 2027 and in China from 2023 to 2029, the institute analyzed.
In Japan, electric vehicle prices are expected to fall starting with electric SUVs only after 2025 and small electric vehicles are expected to have price competitiveness after 2030 due to low prices of internal combustion vehicles.
Global sales of electric vehicles are expected to expand more than 10 times from 2.1 million units in 2019 to 25.8 million units in 2030.