Thursday, April 10, 2025

New figures: The weakness of electric cars has halved in price in 4 years

Right now, the battery is one of the things that keeps most drivers from buying an electric car. But that may change over the next four years, new figures from Goldman Sachs show.

According to a new analysis from Goldman Sachs, electric car batteries are not only getting cheaper, but they will also undergo significant price drops in the coming years.

Already this year, the prices of electric car batteries have fallen by 25 percent compared to last year. Forecasts indicate that the average price per kilowatt-hour will hit $111 by the end of the year, but still remain above the crucial $100 level.

Analysts from Goldman Sachs expect the price pressure on batteries to continue. Within the next two years, prices are expected to fall by a further 28 percent.

Which means that battery prices will be halved within four years. According to the analysis, this will lead to electric cars becoming as economically advantageous as traditional petrol-powered cars – even without government subsidies.

– There are two main reasons for the price drop. The first is technological progress.

READ ALSO: Danish car company hit by hacker attack

– We are seeing more new battery products that have 30 percent higher energy density and lower costs, explains Nikhil Bhandari, co-head of Goldman Sachs Research's Asia-Pacific Natural Resources and Clean Energy Research.

The second reason is falling prices for the metals used in the production of batteries. Lithium and cobalt, which account for around 60 percent of the cost of battery production, have seen significant price drops.

– About 40 percent of the future price decline can be attributed to lower raw material costs, especially after the high levels from 2020 to 2023, adds Bhandari.

The battery suppliers have also optimized their production by building battery packs directly from and from single cells, reducing costs. On the other hand, the packages themselves become more complicated to repair.

It is especially LFP batteries that use fewer rare metals that are gaining market share. It happens i.a. in China, where the technology is expected to soon account for 40 percent of the electric car market.

However, NMC batteries, based on nickel and cobalt, continue to dominate globally.

This development is a challenge for new actors such as Swedish Northvolt, which faces severe price pressure. However, the company managed to pay a gigantic tax debt last week and thus avoid bankruptcy. Read more about it here.

– It takes about 10 years from the start of research and development to production, and many companies struggle to become competitive in time, notes Bhandari.

Read more exciting news from and about the world of cars right here!

Latest

Don't miss

124-year-old auto giant lays off every sixth employee

German Webasto, which makes its living by making heaters...

England reverses ban on petrol and diesel cars by 2030

First they said 2030, then 2035 and then 2030...

VW's BMW with W10 engine has received license plates

A few years ago, we wrote here at Boosted...

How 3 points will save Volvo from bankruptcy

Håkan Samuelsson returns as CEO of Volvo Cars. His...

Wants to go to Denmark – crisis-stricken car brand fires director

The low-cost brand Onvo, which is aiming for a...
Boosted Magazine
Boosted Magazine
Boosted in Denmark has over a million unique users, surpassing two million sessions, and accumulating over seven million page views each month, and our platforms has become a hub for automotive enthusiasts. Now you can enjoy our content in English too! Enjoy our free car news - every day. Want to talk to us? Write an email to boosted@boostedmagazine.com
spot_img

BBS survives bankruptcy for the 5th time – becomes German again

The Turkish holding company ISH Group could not save BBS from bankruptcy, so now the company has been sold back to German KW Automotive....

Sales of used Teslas plummet in Denmark

The numbers only point in one direction. Namely, it is more than difficult to get rid of a used Tesla. At least without losing...

England reverses ban on petrol and diesel cars by 2030

First they said 2030, then 2035 and then 2030 again. And now neither diesel nor petrol cars will be banned in England after all....

These cars are now allowed in Denmark – a benefit for society

From January 1, 2027, Transport Minister Thomas Danielsen will allow 7-axle trucks to increase their weight by two tons. This is intended to make...

BMW's new super battery charges hybrid cars in 1 minute

The wait at the charging station is over. At least if you believe BMW's latest hybrid development. Charging time is just one minute. BMW...

Jeff Bezos behind Slate Auto: New American pickup for DKK 175,000.

New carmaker Slate will launch a $25,000 electric pickup truck in the US. Amazon founder Jeff Bezos is reportedly among the investors. Now a...

Possible winner of Trump's tariff war: Used electric cars

American car buyers are being hit by new tariffs – but used electric cars like the Tesla Model 3 and Hyundai Ioniq 5 seem...

Media: Mercedes drops 4-cylinder C63 AMG

Sales of the 4-cylinder C63 AMG are so bad that Mercedes is preparing to drop the model. The model will be offered with a...

Mazda6e gets 6-year factory warranty in Denmark

Mazda's new electric car, the Mazda6e, which is built on a Chinese platform, will receive a six-year factory warranty in Denmark, the importer says....

New bill bans all cars from having their tail lights turned off

In Sweden, the Christian Democrats have had enough of cars with their taillights turned off, so the party now wants to ban them. But...

Trump tariffs create car chaos in the US: Thousands of cars stand still

Several automakers have paused deliveries, while new tariffs from the Trump administration are creating uncertainty and car queues at US ports. The situation is...

Ford patents manual transmission for electric cars

It's just an idea. Or rather a patent. But now For has it. That is, the possibility of equipping electric cars with manual transmissions....