Future of Transport Policy Brief

FUTURE OF TRANSPORT | La Jolla Conference 30 th Anniversary Policy Brief

Cost: According to a recent report by Bloomberg New Energy Finance (BNEF), EVs will reach price parity with vehicles powered by IC engines by 2026. Although some EVs are priced at the same level as their IC engine counterparts, without government subsidies this pricing would not be economically viable. As such, estimates indicate that vehicle manufacturers will be able to retain the same profit margins in their EV models – without the help from subsidies – in around five years due to falling costs of manufacturing, as well as availability of more affordable inputs such as batteries. 2 • Battery prices have already fallen 89% from 2010 to 2020. 3 • Current trends suggest that battery prices will continue to fall more than 50% in less than 10 years from $137/kWh in 2020 to $60/kWh in 2029.

2 https://www.bloomberg.com/news/newsletters/2021-05-25/hyperdrive-daily-the-ev-price-gap-narrows 3 https://about.bnef.com/electric-vehicle-outlook/

FUTURE OF TRANSPORT | INSTITUTE OF THE AMERICAS

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