The future of electric vehicles is looking brighter than ever. Experts predict that by 2027, EVs will be cheaper to produce than conventional, fuel-powered cars. The increase in dedicated production lines along with falling EV battery production costs will make EVs more affordable to buy compared to traditional vehicles.
In late 2021, the Biden administration gathered executives from Ford, General Motors, and Stellantis at the White House to discuss goals of strengthening leadership on clean cars and trucks. The White House, Ford, GM, and Stellantis released a joint statement, saying, “Today, Ford, GM, and Stellantis announce their shared aspiration to achieve sales of 40-50% of annual U.S. volumes of electric vehicles (battery electric, fuel cell, and plug-in hybrid vehicles) by 2030 in order to move the nation closer to a zero-emissions future consistent with Paris climate goals.”
The three biggest U.S. automakers aren’t the only ones making a dramatic shift to support electric vehicle innovation and manufacturing. BMW, Ford, Honda, Volkswagen, and Volvo also released a joint statement supporting a national greenhouse gas emissions standard and the USA in building consumer demand for electric vehicles.
Lower Battery Costs
With the central government’s support in increasing EV ownership, the auto industry is under positive pressure to improve EV technology. So, with EV production expected to rise, we also anticipate technological improvements – specifically with EV batteries. Batteries are the most expensive part of the electric vehicle, contributing to the EV’s sticker price and higher upfront cost compared to its gas-powered equivalents. However, all that will change. Thanks to advances in technology, manufacturers can produce EV batteries at lowered costs leading to lower EV prices.
According to a recent report by BloombergNEF (New Energy Finance), the cost per kilowatt-hour is trending downwards, and by 2023, the market average should be $101 per kWh. And once the price point is $100-per-kWh, experts expect the cost of EVs will match the prices of conventional gas-powered cars.
More EV Charging Stations Proposed
Promoting EV ownership means making it easier for consumers to access charging stations. In February 2022, the Biden administration proposed a $5 billion funding plan to states for electric vehicle chargers over five years as part of an infrastructural plan. There is also an increase in the private sector investing in charging infrastructure.
Most EV Drivers prefer to charge at home and this poses a problem for the existing electric infrastructure both in single dwellings and multi-unit residential buildings. Fortunately, EV Energy Management Systems are here to assist home and residential property owners avoid long and costly service upgrades and offer EV charging service to EV buyers.
While the upfront cost of an EV is still higher than conventional cars, they are ultimately cheaper to own and operate in the long run. It seems that the benefits of EV ownership are increasing now that the federal government has expressed support and intentions to strengthen EV manufacturing and budgets for charging infrastructure.
