New research has suggested that electric vehicles could cost the same to produce as internal combustion engine (ICE) vehicles by 2024.
The claim by UBS states that the additional cost of battery cars against ICE will reduce to approximately £1500 by 2022 and be zero by the middle of the decade.
UBS made the claim based on analysis of the price and cost of development of batteries from the seven largest manufacturers in the market. If true, it would represent a significant moment for EVs as one of the main barriers to entry for consumers and businesses would be removed.
It could also mean – similar to solar PV – an acceleration of the market place and further driving down of costs, resulting in EVs being cheaper to buy them ICE – a potential tipping point for the technology.
UBS’s Tim Bush claimed that there would not be “many reasons left to buy an ICE car after 2025”.