Electric cars: why a price drop is looming

Electric cars: why a price drop is looming
Electric cars: why a price drop is looming

Electric cars still remain too expensive for many French people.

But the price of their battery is falling, which could have an effect on the price of access.

To what extent? TF1’s 8 p.m. looks into the question.

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The electric car, the vehicle of tomorrow?

Buying an electric car is sometimes far from obvious. In this car dealership in Yvelines, a visitor is perplexed by a model with a posted price of 14,880 euros. “I find it a bit expensive considering the size of the vehicle, he says. I can’t see going on vacation with this.“In this store, only two out of ten cars sold are electric. The main obstacle to purchasing? The price, of course, according to Jacques Alvergnas, the manager of the place.”It’s true that an electric vehicle is a vehicle that is more expensive, underlines the specialist. They surely cost 20% more compared to to a thermal equivalent.

The price of electric batteries falling

Despite this still high amount, there is good news: the price of batteries is falling. The explanation? Its components, such as cobalt, manganese and lithium, cost less. Thus, the price of a battery made mainly from lithium fell by 14% in 2023, then by 13% this year. Price variations which today depend on the Chinese market. A territory in which the number of electric cars is no longer increasing today. “If Chinese demand falls, supply and demand are less in tension, and this automatically lowers the price of ore.“, explains Guillaume Pitron, journalist specializing in the geopolitics of raw materials.

Result: car batteries are therefore less expensive for manufacturers. A development which is far from being a detail, because these represent up to 60% of the final price of a vehicle. Will the price of electric cars be reduced in France? “The fact that the raw materials of the products are falling today, it is estimated that this will represent approximately 20% advantage on the construction cost of the producersspecifies Elisabeth Young, automotive market expert, in the 20H report to be found at the top of this article. This will have an impact on the consumer, who will be able to buy cheaper electric vehicles.

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The price of electric batteries is expected to continue to fall by nearly 6% in 2025. This would allow the manufacturing costs of thermal cars to match those of electric cars.


TA | TF1 report: Léa DESCHATEAUX, Séverine FORTIN and Lucas LASSALLE

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