The price of electric car batteries has dropped dramatically and they continue to get cheaper.
The US Department of Energy’s Department of Automotive Research has examined the price trend for batteries for electric cars and notes that they have dropped 90 percent in price in 15 years, between the years 2008 and 2023.
The prices of lithium-ion battery cells have fallen from approximately SEK 14,915 per kWh in 2008, to only SEK 1,464 per kWh in 2023.
The reduction has made the electric car more competitive in price and more attractive as the range has increased.
A big reason is that the energy density has increased, that is, you can store more energy in the same battery size.
At present, it is difficult for many Swedish households to buy an electric car as the climate bonus has disappeared and interest rates have skyrocketed at the same time as fuel prices have fallen.
But the continued positive development of the price and capacity of the batteries will mean that we are approaching the tipping point where a new electric car becomes a better deal than a new car with a combustion engine.
We also know that fuel prices will rise when the EU introduces a new system of emission rights that makes it more expensive to emit carbon dioxide.
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