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Low EV costs could drive two-thirds of global car sales by 2030: Report | Mint – Mint

A new research suggests that due to declining battery costs, electric vehicles may achieve price parity with fossil-fuel models in Europe by 2024 and in the U.S. market by 2026. Furthermore, it is projected that electric vehicles could comprise two thirds of global car sales by 2030.
According to a report from the Rocky Mountain Institute (RMI) released on Thursday, it foresees a reduction in battery costs by half during this decade, declining from $151 per kilowatt hour (kWh) in 2022 to a range of $60 to $90 per kWh. This cost decrease is expected to make electric vehicles cost-competitive with petrol cars in all markets by 2030, not only in terms of purchase price but also in running costs.
Reportedly, batteries constitute a significant expense, making up approximately 40% of the total cost of an electric vehicle (EV). This cost factor has, until recently, rendered EVs out of reach for a substantial portion of consumers. However, manufacturers are continuously working on reducing these prices through investments in innovative battery chemistries, materials, and software to enhance the efficiency of EVs, RMI senior principal Kingsmill Bond told Reuters.
RMI’s analysis indicates that the swift expansion of electric vehicle (EV) adoption in Europe and China suggests that by 2030, EV sales could surge by at least six times their current levels, capturing a market share ranging from 62% to 86% of total sales.
In July, electric vehicle (EV) sales in the European Union surged by nearly 61% compared to the same month in 2022, constituting 13.6% of total automobile sales.
The European Union has set a goal to prohibit the sale of new fossil-fuel models starting in 2035.
In the United States, there is no official nationwide commitment to ending the sale of combustion engine models, but both California and New York are aiming for a transition to exclusively selling zero-emission models by 2035.
“It’s not radical whatsoever to see the continued exponential growth of electric vehicles. This is what one should expect,” stated RMI’s Bond to Reuters.
As per RMI’s research findings, car-related oil demand reached its zenith in 2019 and is projected to decline by a minimum of 1 million barrels per day annually post-2030.
Simultaneously, research from Exeter University’s Economics of Energy Innovation and System Transition (EEIST) project also anticipates a rapid increase in electric vehicle (EV) sales.
The research indicates that electric vehicles (EVs) are approaching a “tipping point” in terms of price parity with fossil-fuel models. This tipping point is expected to occur as soon as 2024 in Europe, 2025 in China, 2026 in the U.S., and 2027 in India, particularly for medium-sized cars, and possibly even sooner for smaller vehicles.
(With inputs from Reuters)
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