Electric to Become Cheaper Than Internal Combustion Within 15 Years

Tesla may have started the race, but various others are now joining in from all over the globe.  Worldwide battery production is here and while it’s already making big bucks in its own right, Bloomberg New Energy Finance has predicted the amount being produced now is set to double by 2021. This is good news for consumers as increased supply means lower prices, which is also good news for the upcoming electric-car industry and those involved in the energy industry looking to get into the renewable energy storage market.

Various companies are appearing all over the globe just dying to give Tesla a run for its money in terms of battery production. One example is a new battery planet run by Accumotive, based in Kamenz, Germany. This facility is rather impressive and even warranted a visit from German Chancellor Angela Merkel last week. The half-billion euro facility will manufacture and supply batteries to its parent company Daimler, which is all set to take the electric vehicle (EV) market by storm.

However, it looks like the market share for battery production is likely to come from Asia with nine of the world’s largest new battery factories being constructed in China as you read this. Add that to the existing top battery producers of the continent, including Panasonic, LG, and Samsung, and it seems pretty obvious where the numbers will be.

But, with that much healthy competition around it does also mean that prices for batteries will continue to fall. According to a recent analysis by Benchmark, on a per-kilowatt-hour basis, prices have dropped from $542 on 2012 to just $139 today. That makes a huge difference for electric car makers as the battery cost alone can be as much as 40 percent of the vehicle’s value.

Experts suggest that by 2030 electric cars will become a cheaper form of transport than the good, old, internal combustion engine, and the scary thing is, that’s not too far away now!  But, as always, only time will tell, so watch this space.

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