Electric Car Batteries Have Become 90% Cheaper in 15 Years and May Soon Become More Affordable Than Their Internal Combustion Engine Analogs (2 photos)

Experts from the Transportation Technology Office of the U.S. Department of Energy analyzed the cost estimates for electric vehicle batteries over time. It turned out that the average cost of a battery has decreased from $1,415/kWh in 2008 to $139/kWh in 2023. Based on the current trend, it is predicted that in a few years, battery models will become more affordable than their ICE counterparts.





The calculation did not take into account the cost of the battery as a component of the car, but the cost of accumulating a unit of energy. In other words, the 81 kWh battery of the Tesla Model Y, which cost $11,259 in 2023, would have cost $114,615 15 years ago.



The progress has been made thanks to improvements in battery technology and chemistry, new manufacturing processes, and a significant increase in battery production volumes.

A study by the analytical company Gartner predicts that electric cars will be cheaper to produce than fossil-fuel vehicles by 2027. Other experts, taking into account the slump in EV sales in 2024, are inclined to believe that this will not happen before the end of the decade. In any case, the availability of electric cars is already being felt in global auto markets.