EV Battery Costs: Current State and Future Prospects

South Africa EV sector
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The cost of an electric vehicle (EV) battery is a significant factor in the overall price of an electric vehicle. This cost varies depending on several factors, including the size and capacity of the battery, the type of battery, and the specific model of the vehicle.

On average, an EV battery is viable for approximately 200,00 miles. After this, it will need replacing. Based on current market prices, the cost of a new cell ranges from USD 5,000 to USD 25,000.

EV Battery Type and Size

The most critical point is that raw materials – minerals, metals and chemicals – constitute about 80% of the cost of a battery cell. One influential factor in cost, is the size and capacity of an EV battery. For instance, a 70 kWh battery in a 2023 Ford Mustang Mach-E costs around $6,895, while a larger 200 kWh battery in a 2022 Cadillac Escalade EV can cost up to $22,510.

The type of battery used in an EV also affects its price. Lithium-ion batteries, which are commonly used in many modern EVs due to their high energy density and long lifespan, tend to be more expensive than nickel-metal hydride batteries.

Future Trends

Despite the current costs, the price of EV batteries is expected to decrease in the coming years. This is due to advancements in technology that improve the efficiency and performance of these batteries. Additionally, as production scales up to meet the growing demand for EVs, economies of scale will likely lead to further reductions in battery prices.

Also, car manufacturers like Toyota are working on big on solid-state batteries. Solid-state batteries offer superior energy density compared to conventional lithium-ion batteries. This enables them to store a greater amount of energy within the same spatial confines. This advancement has the potential to extend the range of electric vehicles significantly.

Solid state batteries are still under development with cost and safety the main hurdles that need to be overcome.