Will power battery prices fall in 2030?

The report shows that the price of some electric car models will be the same as that of traditional internal combustion engine cars as early as 2024 and will continue to decline in 2025. But to do that, battery costs need to fall further, even as the demand for metals for cells grows.

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

The country is on track to reduce its auto trade deficit by # 5bn($7bn) through a series of incentives, according to the Green Alliance report. The World Wildlife Fund says the early phasing out of diesel and petrol cars will add 14,000 jobs to the auto industry. According to another report this week, both groups are urging Britain to move forward with the ban on fuel cars until 2030.

China's government, one of the world's most polluted countries, is implementing production targets aimed at increasing sales of electric vehicles, seeking to make them one of the world's most popular. Li shufu, a billionaire and founder of Zhejiang Geely holding group, bought a 7.3 billion($9 billion) stake in Daimler last month.

Driven by technology and market demand, electric car battery prices are expected to fall by 67 per cent by 2030.

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

"Sales of electric vehicles will continue to grow over the next few years, but battery prices will need to fall further if they are to be truly popular in the mass market," said ColinMcKerrach, transport analyst at the company. "If the cost of battery materials continues to rise significantly, it could delay a turning point in the price of electric cars that is equivalent to that of fuel trucks. "

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