Will EV costs decrease in the next few years?

Industry announcements and sales volume trends suggest that these costs will decrease significantly in the next few years. DOE anticipates that incremental costs for clean vehicles of all classes will continue to decline as costs of EV batteries, powertrain components, vehicle materials, and hydrogen fuel cells continue to decline.

Which energy storage technologies are included in the 2020 cost and performance assessment?

The 2020 Cost and Performance Assessment provided installed costs for six energy storage technologies: lithium-ion (Li-ion) batteries, lead-acid batteries, vanadium redox flow batteries, pumped storage hydro, compressed-air energy storage, and hydrogen energy storage.

What are the estimated battery costs?

The estimated battery costs incorporate DOE’s understanding of battery production volumes for the different vehicle classes and capture the various prices that OEMs across the market experience. The costs discussed in this report represent a point in time reflective of current market conditions.

How does Doe reduce the cost of new vehicle technology?

DOE also expands medium and heavy-duty vehicle classes previously analyzed and updates results based on current costs of technology. Reducing the cost of new vehicle technology for consumers is a central focus of DOE R&D efforts and has led to substantial reductions in the cost of plug-in and fuel cell vehicles over time.

What is the incremental purchase cost of a clean vehicle?

The incremental purchase cost of a clean vehicle is the excess of the purchase cost of such a vehicle over the purchase cost of a comparable ICE vehicle. Variation across vehicle makes and models makes it difficult to determine the incremental cost of vehicle electrification technologies by comparing two vehicles currently for sale.

How have battery costs changed since 2022 & 2023?

DOE’s tracking of technology costs indicates that battery costs have decreased notably since its 2022 and 2023 reports.11 At the vehicle level, this decrease in battery cost is offset in some cases by increased costs to producers over the last four years.