As much as battery costs have fallen in the past five years, it still puts the price a bit out of reach compared to a more conventional gasoline-powered vehicle. However, automakers continue to close the gap, with General Motors making waves in stating it will pay only $145 per kWh hour for the cells in its battery pack in the 2017 Chevrolet Bolt EV.
Green Car Reports states a conversation recently unfolded between former GM electrification expert, Jon Bereisa, and financial analyst Colin Langan. In the conversation, Bereisa estimated, based on information from Tesla, the company would be paying $260 per kWh hour.
However, Tesla had none of it. During the conversation, Jeff Evanson, head of Tesla’s investor relations group, dialed into the call to try and set the record straight. He stated the current cost per kWh hour is $190 for the Model S, and corrected Bereisa on his assumptions of the inbound Model 3 being made entirely of aluminum.
The former GM executive shot back saying that the raw materials cost for today’s lithium-ion cell chemistries is $160 per kWh if you assume a conventional 40-percent supplier markup.
Through the conversation, it became clear a cold war is brewing between suppliers and automakers to offer low battery prices. Bereisa estimated battery prices will likely fall to around $135 per kWh by 2025, with some analysts saying it could reach $100 around the same time.
Should that happen, mass EVs could find there way into more and more driveways across the world.