50 percent. That's how much the price of battery packs for electric cars will drop within just two years, if you ask Volkswagen. The price could drop further.
Should you wait to buy an electric car? Maybe. At least if you want it from new and just a little cheaper.
As early as 2027, Volkswagen expects that the battery packs for electric cars will have fallen in price by 50 percent. That is, compared to what a similar battery pack cost in 2023.
And that's not all. According to analyst Matthias Schmidt, Volkswagen sees in 2029 for themselves, the battery packs will be another 20 percent cheaper.
The question is whether this is something that drivers will notice at dealerships. Or whether the VW Group will increase its earnings per car through this.
Volkswagen is counting on the dramatic drop in price because its subsidiary PowerCo can ramp up production capacity. In addition, the prices of raw materials for electric car batteries have been falling for a long time.
Lithium has become almost 90 percent cheaper in 3 years
The price of lithium, among other things, has plummeted by 85 percent since 2022. But despite the cheaper materials, not all battery factories are managing to keep their heads down.
Volkswagen felt this as recently as this month, when the Swedish battery manufacturer Northvolt went bankrupt.
The bankruptcy means that the Germans – who were the factory's largest shareholder – will write off 13 billion Danish kroner as a loss. Conversely, it is not only the car brands that are being hurt by the bankruptcy.
In fact, the bankruptcy in Sweden has cost every Dane a fortune. The ATP pension fund, to which almost all wage earners in Denmark pay, has lost 2.3 billion kroner on the closure of Northvolt.
