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Envision Energy Predicts That EVs Will Be Cheaper Than Gas Ones by 2020

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Many environmentally-conscious drivers wish that electric vehicles (EVs) were more affordable. They might soon get their wish. According to Chinese battery supplier Envision Energy, 2020 promises lower prices for EVs.

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Chevrolet Bolt EV Lithium-ion electric battery pack

Chevrolet Bolt EV battery pack

Positive predictions

The company’s CEO, Lei Zhang, claims that it in the next two years it will be able to make battery packs for less than $100 per kilowatt-hour (kwh). This is the threshold which analysts and automakers alike say that EVs will become cheaper to produce and sell than fossil-fueled models.

Zhang also predicts that the battery packs will cost just $50 per kwh in 2025. At this point, EVs will be 20-30 percent cheaper than vehicles with a diesel engine. He envisions a rapid surge in EV adoption, as a result of this drastically reduced price.

Even with reduced costs for battery packs, however, it might take automakers a bit longer to incorporate them into EV models and lower vehicle prices accordingly. Per Green Car Reports contributor Eric Evarts, OEMs could take as long as five years to integrate the new battery packs into their production methods.

Chevrolet Bolt EV

Chevrolet Bolt EV

GM’s contribution to advancing EV technology

Nonetheless, this optimistic prediction is encouraging to consumers who are interested in purchasing an EV of their own in the near future. GM is one of the key manufacturers who is paving the way for more Americans to adopt EV models. Marry Barra recently articulated a Zero Emissions vision for GM, as evidenced by three of the company’s achievements this year: the increased production of the Bolt model, GM’s battery lab expansion, and GM’s two EV model releases in China this year (the Buick Velite 6 EV and the Baojun E200).

Only time will tell if Zhang’s price reduction prediction for EVs will become a reality in 2020. Until then, we anticipate more news from GM and other mainstream automakers as they continue to fine-tune their EV models — and take small steps to making them more affordable for the average American consumer.

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News Source: Green Car Reports