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The Battery Holds the Key

The falling cost of the electric drivetrain is key for price competitiveness with regular cars
More Competitive

It all depends on battery costs. Mid-sized electric vehicles won’t be competitive with their conventionally powered equivalents until battery packs drop to about $100 per kilowatt hour, probably around 2025, from more than $200 at the moment, according the Bloomberg New Energy Finance. Large cars and SUVs will be the first to reach price parity with internal combustion engines, while small cars need battery prices lower than $80 per kilowatt hour and will require new technologies such as high-voltage cells or solid-state batteries.