Electric vehicles (EVs) are generally expensive when compared to internal combustion engine (ICE) vehicles of apparently similar performance & size. Limited range is also a problem for many potential buyers.
Cost & limited range of EVs is a consequence of the price of lithium ion (LiIon) batteries, which are, at least for the moment, the only viable energy storage option. Tesla's cost-is-no-object approach produces a superlative vehicle. If an EV has enough batteries, range is no longer a problem, & performance is spectacular.
It is widely believed that the LiIon battery market is "mature". I.e. that a degree of stability has been achieved & price drops in future will be relatively slow. More recently, it has been suggested that disruptive market pressures, such as forward-pricing & pre-emptive actions to grab market share, will continue to prevent market maturity. Price drops in the range of 20% per annum have been suggested.
For EVs, Dr. Rudolf Krebs of Volkswagen has said that they will be price competive with ICE vehicles in 2015. Elon Musk has promised a "mass market" EV, "Hopefully 2016, but I would say no later than 2017."
Business Spectator on the LiIon market:
http://www.businessspectator.com.au/article/2014/1/20/smart-energy/disruptive-battery-price-drop-continue?utm_source=exact&utm_medium=email&utm_content=557876&utm_campaign=cs_daily&modapt= / ABB electric vehicles vehicle e-mobility Hans Streng cell battery prices coming down transform auto energy markets market drop falling precipitous precipitously dropping gradual effect e-mobility industry volumes volume increasing increase exponentially climb leap prices decline exponential recent price movements report reported different media price declines decline per cent observed in the market extrapolation extrapolated erosion basis of disruptions supply chain companies company Samsung Panasonic forward pricing forward-pricing pre emptive preemptive pre-emptive actions grab market share cut throat cut-throat longterm battery-battle battery battle samsung panasonic battery price war high-level insight prevailing EV forecasts sharpen the battle in battery prices Dr. Rudolf Krebs heads Volkswagen E-mobility program price electric vehicle equivalent combustion-motor combustion motor vehicle Increase EV volume battery price battery-price decline battery prices declined 14 per cent YoY and 30 per cent battery prices to go down straight extrapolation disruptions Bloomberg analysis battery price battery-price decline 40 per cent steeper decline normal erosion exponential effects storage capacity prices year on year year-on-year YoY mature market decline avalanche effect similar to what happened in the PV industry collapsing prices LCD industry exponential disruptive effects trendwatch analysis Germany current battery prices Tesla projections compare price levels price curve far from mature market erosion-profile erosion profile typical early market disruptions driven strategic moves anticipated market explosions ABB Conversations CleanTechnica /
