Many factors do, but it starts with how expensive their batteries are. Batteries make up for one-third of the cost of electric vehicles. Some EV’s manufacturers are setting ambitious goals for producing $25K electric vehicles by 2023. This will mean having to find ways to reduce production costs without compromising on the safety side. If not manufactured properly, malfunctions in batteries could pose a risk for fire, among other risks.
Why are batteries so expensive?
This is mainly due to the costly components that make up a battery. For example, a cathode (the most expensive component in an EV’s battery) uses materials like cobalt, nickel, lithium, and manganese to store and release energy. The mining process to extract and convert these materials into compounds that can be used in batteries is a pricey one, which in turn, bumps up the cost of the final product. In addition to this, before being placed on the market, batteries must go through testing for compliance with regulatory requirements. Testing for batteries, such as safety, environmental, abuse, and durability testing, to mention a few, is another key factor that adds to the final price.
How can the cost of batteries be reduced?
One of the main areas that manufacturers will be taking a look at, in order to reduce the cost of batteries, is the substitution of materials with the highest cost for less expensive ones. For example, alternatives for cobalt, such as nickel and lithium iron phosphate cells, are among the ones being considered.
So… is it worth it to “Go Electrical”?
Most certainly yes. By 2023, consumers might be able to purchase an electric vehicle for just $25K, about $15K less than some of the least expensive models currently available on the market today. At the rate that the technology is evolving, we will soon be able to see performance upgrades that will increase a car’s range by 50% before 2026, as some batteries makers state. EV’s might be more expensive to start with, but between the savings on gasoline, tax breaks, and utility grants to offset the cost, going Electrical is simply a no-brainer!
For more information on Testing & Certification for EV Batteries, please contact LabTest Certification at firstname.lastname@example.org.
Stringer, D. & Park, K. – Bloomberg (2021, September 21). Why an electric car battery is so expensive. The Post-Standard & Syracuse.com. Edition. https://www.bloomberg.com/news/articles/2020-10-22/why-building-an-electric-car-is-so-expensive-for-now-quicktake