EVs Quickly Become Cost Competitive With Their Gas-Powered Peers image

The prices of EVs are quickly going down, soon to become tough competitors for their gas-powered peers.

Officials from the Electrification Coalition advocacy group said that short-range plug-in hybrid EVs have already become cost competitive with their internal combustion engine peers, as well as the hybrid EVs. The specialists analyzed costs of maintenance, purchase, fuel, residuals and federal tax credits, and the results showed that owning a gas-powered vehicle will be more expensive by 2024, than owning a hybrid, plug-in hybrid or pure electric vehicle.

“In this analysis, we also saw that battery electric vehicles should have a total cost of ownership that is competitive with internal combustion engines in 2017,” said Jonna Hamilton, the coalition’s vice president of policy.

In 2008 the price for producing a lithium-ion battery has dropped to $1,000 per kilowatt-hour and it has reached in 2012 around $600 per kWh. Analysts predict that the price will continue to fall to around $300 and $325 per kWh by 2020. Over the past year and a half, more than 110,000 plug-in vehicles have been sold in the US, including 9,000 units sold in June, the best month to date.

Nissan sold 2,225 Leaf EVs, an increase of more than 315%, GM sold 2,698 Chevrolet Volt plug-in hybrids, up 53% and Tesla sold 1,425 Model S electric sedans.

Source: latimes.com