Low EV costs could drive two-thirds of global car sales by 2030: Report

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Rocky Mountain Institute (RMI) released on Thursday, it foresees a reduction in battery costs by half during this decade, declining from $151 per kilowatt hour (kWh) in 2022 to a range of $60 to $90 per kWh. This cost decrease is expected to make electric vehicles cost-competitive with petrol cars in all markets by 2030, not only in terms of purchase price but also in running costs. Reportedly, batteries constitute a significant expense, making up approximately 40% of the total cost of an electric vehicle (EV).

This cost factor has, until recently, rendered EVs out of reach for a substantial portion of consumers. However, manufacturers are continuously working on reducing these prices through investments in innovative battery chemistries, materials, and software to enhance the efficiency of EVs, RMI senior principal Kingsmill Bond told Reuters. RMI's analysis indicates that the swift expansion of electric vehicle (EV) adoption in Europe and China suggests that by 2030, EV sales could surge by at least six times their current levels, capturing a market share ranging from 62% to 86% of total sales.

In July, electric vehicle (EV) sales in the European Union surged by nearly 61% compared to the same month in 2022, constituting 13.6% of total automobile sales. The European Union has set a goal to prohibit the sale of new fossil-fuel models starting in 2035. In the United States, there is no official nationwide commitment to ending the sale of combustion engine models, but both California and New York are aiming for a transition to exclusively selling zero-emission models by 2035.