Lithium-ion battery costs continue to decline, what is the development prospects?

March 23, according to foreign media reports, if the cost of lithium-ion batteries continues to decline, then by 2025 electric cars may be cheaper than fuel cars.

According to Bloomberg's new energy finance report, some electric car models will be on par with fuel trucks as soon as 2024 and will become cheaper by 2025. The London-based research institute said on Thursday that to make this happen, battery prices need to fall as demand for the metals contained in the cells continues to rise.

The push for electric vehicles is growing as countries and businesses scramble to clean up urban smog and meet the ambitious climate targets set out in the Paris accord. Members of parliament began a market survey last September to explore the necessary infrastructure and to try to determine whether to move ahead with the 2040 deadline for stopping sales of petrol and diesel vehicles.

The UK is on track to reduce its auto trade deficit by ￡ 5bn($7bn) through incentives, according to the Green Alliance. The World Wildlife Fund says phasing out diesel and petrol cars earlier could add 14,000 jobs to the industry. According to other reports this week, both groups have urged Britain to move forward with the ban on the sale of fuel-powered cars by 2030.

China, the world's biggest polluter of pollution, is implementing production targets aimed at boosting sales, hoping to stay ahead of the global trend for electric vehicles. Li shufu, the billionaire founder of Zhejiang Geely holding group, bought a 7.3 billion ($9 billion) stake in Daimler last month.

Electric car battery prices, driven by technology and market demand, are expected to fall by 67 % by 2030

Bloomberg new energy finance said the expected increase in large-scale production of lithium-ion batteries should help drive battery prices down to $70 per kilowatt-hour by 2030. In 2017, the average price of batteries was about $208 per kilowatt-hour, reducing profit margins for electric vehicles, accounting for about two-fifths of the total cost of such vehicles.

“Electric vehicle sales will continue to grow in the next few years, but to achieve real popularity in the mass market, battery prices still need to decline further,” said Colin McKerracher, an analyst at Bloomberg New Energy Finance and Transportation. If the cost of battery materials continues to rise sharply, it may delay the turning point of electric car prices and fuel cars."

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