The Road to Electric Vehicles with Lower Sticker Prices than Gas Cars – Battery Costs Explained

The Department of Energy goal for the industry is to reduce the price of battery packs to less than $100/kWh and ultimately to about $80/kWh. At these battery price points, the sticker price of an EV is likely to be lower than that of a comparable combustion engine vehicle.

Forecasting when that price crossover will occur requires models that account for the cost variables: design, materials, labor, manufacturing capacity and demand. These models also show where researchers and manufacturers are focusing their efforts to reduce battery costs. Our group at Carnegie Mellon University has developed a model of battery costs that accounts for all aspects of EV battery manufacturing.