Hang on to Your Car for Now – Then Buy an EV

As early as 2023, experts expect, the cost of building an electric car will be on par with the cost of making a similar gas-powered model.

The reason is the rapidly falling cost of producing the battery packs for electric cars. The way the industry measures this is the price per kilowatt hour (kWh). In 2010, the cost for a battery pack was more than $1,000/kWh, according to Bloomberg BNEF. In 2020 it reached $126. When that price falls to $100 it is expected the cost to build an electric car will be no more than the cost to roll a similar gasoline-powered car off the assembly line. That is expected to happen as early as 2023.

Moreover, an analysis by engineers at Carnegie Mellon University anticipates that by 2025 a battery pack price of around $80/kWh will result in EV sticker prices being lower than similar conventional cars.