Aurélien Fleurot // Photo credit: Mathieu Thomasset / Hans Lucas / Hans Lucas via AFP
06:35, November 3, 2024
Good news for those considering switching to electric cars: prices could fall. Manufacturers are working on this by tackling the reduction of battery costs. And the first effects will be visible in the coming months for buyers.
Electric cars could see their prices drop in the coming months. Different manufacturers are working on reducing battery costs. Until now, the standard is the NMC battery, for nickel, manganese and cobalt.
“We are going to try to halve the cost of this battery”
It is effective, but it is expensive, especially cobalt which, in addition, is not always extracted ethically. Several technologies are being developed to replace it. Because to democratize electric cars, we will have to succeed in selling them cheaper, as explained by Maxime Bayon de Noyers, head of innovation at Ampère, the Renault group subsidiary dedicated to electric vehicles.
“We are working on everything possible to reduce the cost of the battery. If we say that the battery represents 30 to 50% of the cost of a car, then we are going to try to halve the cost of this battery. So , we must earn somewhere between 15 and 25% of the price of the car.”
With a first step from 2026 and a 20% reduction on medium-sized batteries. Then in 2028, the cost of all batteries will be halved, which could, for example, reduce the entry price of the Renault 5 from 30 to 23 or 24,000 euros, i.e. the current price of a Renault Clio , in hybrid version.
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