The automotive industry is about to reach a radical transformation, as a new study predicts that electric vehicles may achieve price parity with vehicles with internal combustion engines by 2026.
The costs of producing batteries, which make up a significant part of the price of electric cars, have decreased significantly in recent years. “Bloomberg New Energy Finance” estimates that the costs of battery packs, currently about 135 dollars per 1 kWh, may drop to less than 100 dollars per 1 kWh by 2025. This reduction in costs will make electric vehicles more competitive in price without affecting the profitability of manufacturing companies.
At the same time, the demand for electric vehicles continues to rise as the charging infrastructure expands and energy efficiency improves. Automakers are increasingly investing in electric models to meet globally stringent environmental regulations. As price parity nears, electric vehicles could dominate sales, marking a crucial moment in global efforts to reduce carbon emissions
