Electric vehicle prices will drop to internal combustion car levels within 2 to 3 years

Hyundai Motor Company Electric Vehicle Ioniq

[Asia Economy Reporter Changhwan Lee] There is a forecast that electric vehicle prices will rapidly drop to levels similar to internal combustion engine vehicles.

According to the 'New Energy Outlook 2020' report by BloombergNEF, summarized by the Korea Electric Power Corporation Management Research Institute on the 13th, electric vehicle prices worldwide are expected to fall to levels comparable to internal combustion engine vehicles as early as next year, or within 10 years at the latest.

In the United States and Australia, large electric vehicles and SUVs (Sport Utility Vehicles) are expected to reach prices similar to internal combustion engine vehicles by next year. Small and mid-sized electric vehicles are also expected to gain price competitiveness by 2024.

In Korea, the point at which electric vehicles gain price competitiveness by type is earliest for SUVs in 2023. This is followed by mid-sized cars in 2024, and small and large cars in 2026.

The key to electric vehicle price competitiveness is the declining price of batteries. The report forecasts that by 2030, the price of lithium-ion batteries will drop to $61 per kWh, about half of last year's price of $132 per kWh.

Global electric vehicle sales are expected to increase more than tenfold from 2.1 million units in 2019 to 25.8 million units in 2030. During the same period, the share of electric vehicles in total passenger car sales is estimated to grow from 2.4% to 28.0%.

This content was produced with the assistance of AI translation services.