The strategy consultants from McKinsey & Company assess that the price of EV batteries will decrease significantly in the coming years. The production will be optimized, the scale of production will be increased and costs will be reduced. As a result, electric cars will be significantly cheaper.
The consulting firm bases its predictions on developments in the battery industry. The current price of $500 (€407) per kWh will be dropped to $160 dollars (€130) in 2025. The price of the battery pack of a Nissan Leaf, for example, will thus be reduced from $12,000 (€9,787) to $3,840 (€3,132). In addition, McKinsey predicts that a smaller battery will be able to generate a reasonable range in the future.
Electric cars cheaper
The main reason for the lower price is further development of the battery technology. As a result, it is possible that the current prices will have fallen by 80% in 2025. Further optimization of the manufacturing process can lead to a decrease in prices by 30% in the same period. This will make electric cars significantly cheaper for consumers and electric driving a lot closer.