A major study by Boston Consulting Group (BCG) has determined that even if EV battery costs drop by a projected 65% by 2020, the economics will still constrain their widespread adoption. It challenges the industry assumption that a $250 per kWh cost for automotive batteries can be achieved by that date. Nevertheless, the report projects that hybrids, plug-ins and pure EVs will make up 26% of new cars sold in major developed markets. Specifically, the study projects 1.5 million EVs, 1.5 million range-extending EVs, and 11 million hybrids produced in 2020. Regarding the manufacturer’s holy grail of $250/kWh batteries:
Given current technology options, we see substantial challenges to achieving this goal by 2020. For years, people have been saying that one of the keys to reducing our dependency on fossil fuels is the electrification of the vehicle fleet. The reality is, electric-car batteries are both too expensive and too technologically limited for this to happen in the foreseeable future.
—Xavier Mosquet, Detroit-based leader of BCG’s global automotive practice and a coauthor of the study
The study takes on the expectations that current EV technology with its range and cost limitations can effectively replace the IC powered car head on, (Read More…)
Tagged as 2020, ev batteries, ev market share, expensive batteries, hybrid market share predicition
Recent Comments
raph - Depends on what camp your in, GM and Chrysler certainly, but traditional for FoMoCo V8 buyers has OHC for the past 22 years.
mkirk - If we are adding all our motors up I have a 6.7L inline 10 between the 2!!!!
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Hummer - I thought the whole Hydrogen train had been abandoned, GM was also pushing it again a few months back using the out of production Hydrogen...
danio3834 - To be fair, there isn’t a comparison crash pic of the MKT. It might not look all that great but the Town Car scored well in crash...
schmitt trigger - Or, if IBM had gone bankrupt and changed its name to HAL…..oops, that name was already taken.
gslippy - Sure, but when people tasted 6s and 8s, 4s became less popular. So for the last 3 decades, mfrs have tried to simulate the performance of a 6 or 8 by...
mcs - “Tesla will soon be facing fierce competition from the ELR.” What?? the ELR is a 2 door 4 passenger coupe and the Tesla is a much faster...
Type57SC - It is pretty impressive that Musk is buying $100MM of the offering to maintain his ownership level. That is a nosebleed valuation to be buying...
redseca2 - All I know is: 1. In San Francisco I see them everyday. More common than that other american luxury car, Cadillac. 2. My Tesla stock has tripled.