EVs to become cheaper than ICE cars
Experts say electric vehicles (EVs) will soon be cheaper than traditional internal combustion engine (ICE) vehicles, due to falling battery costs.
Figures show that global sales of EVs grew by 43% in 2020, and market share is up to 5% in most European countries (a figure which rises to 54% in Norway, where tax breaks mean EVs are already cheaper than ICE cars).
Prof Tim Lenton, at the University of Exeter, said to the Guardian: “There’s been a tipping point in one country, Norway, and that’s thanks to some clever and progressive tax incentives. Then consumers voted with their wallets.”
BloombergNEF’s analysis predicts lithium-ion battery costs will fall to the extent that electric cars will match the price of petrol and diesel cars by 2023, while Lenton suggests 2024-2025. McKinsey’s Global Energy Perspective 2021, published on 15 January, forecasts that “electric vehicles are likely to become the most economic choice in the next five years in many parts of the world.”