General Motors CEO Mary Barra asserted that the company’s electric cars will turn a profit by 2021. Such a turn of events would be downright remarkable since electric cars consistently lose money. The Chevrolet Bolt EV‘s battery pack costs around $10,000 t0 $12,000 alone, according to battery experts.
Reuters detailed Barra’s promise in a new report published on Tuesday and a number of factors could help see GM’s promise through. One major factor are the automaker’s future batteries. Currently, batteries rely heavily on cobalt, which has become the single most expensive element required of lithium-ion units. As more automaker demand cobalt for battery-electric cars, the price will only climb.
GM’s new battery design, according to sources familiar with the plans, told Reuters that nickel quantities are vastly increased. Nickel allows batteries to store and produce more energy. Other engineering developments include more efficient battery packaging, cooling systems, and energy management. All of these developments, and certainly some unknowns, could plunge GM’s battery cost from $145Â per kilowatt-hour to less than $100 by 2021.
Going back to the Bolt EV, the next battery system could cost just $6,000 in 2021, Jon Bereisa, a former GM engineering director, said. Meanwhile, the battery could pack 45 percent more range thanks to technology improvements.
GM is all in on electric cars, especially in China where regulations will greatly mandate electrification. Whether the North American market follows will be the greater question.
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Bolt EV’s battery is $15,734.29 MSRP, yet is easy to get for under $12K…Like it or not, there’s a bill introduced in California to ban ICE sales in 2040 and if it passes expect a sleuth of lawsuits and a Supreme Court ruling…If it survives other states will join…
The cost of the Chevrolet Bolt is expensive because it has the capacity to give the Bolt a range of 238 miles which is nice; but such range is not necessary as 150-175 miles should be sufficient which would mean shaving the cost of a battery to just $7,500 and with some innovation can drive a 150-175 mile battery to possibly under $5K which would make the EV more affordable.. something else which might help would be to develop more efficient electric motors to allow range to be increased without a higher capacity battery.
It’s not the Bolts’ range that contributes to its high price tag, rather it is specifically GM having LG manufacture the entire battery pack itself, and assemble important aspects such as the drive train. If GM were to partner, and research together and scale the electric vehicle for mass production, it would drive the costs down further. Also, 150-175mi driving range would give me range anxiety. That is not enough range to convince the typical US consumer to purchase an BEV.
Attacking this car’s selling point — impressive range — is a non starter. Might as well tell the Prius to back off of fuel economy.
Queen Mary and Captain Dan Ammon said the same thing about Opel in 2014.
Then they sold out their German colleagues to the French.
This is a more complex issue than the price of the battery.
It needs vehicles that are not lifestyle changers. The issue still is charging times. Also the great lack of changing locations. People do not want to plan their lives around these vehicles.
Also size, the Bolt performs well but it is not a car that every would want even if cost $20k on gas.
GM will need to continue investment in better batteries and make more diverse products. They appear to be on this route but many MFGs are not or are not this far along hence FCA just doing mild hybrids.
Also a California also tried to force similar issues only to blink when the reality is we are just not there yet.
This is going to be en ever evolving event. It also will see how GM progresses and how these products are accepted. The more they sell the better progress on all accounts. But the other MFGS still needs to catch up for this whole thing to work.
Just making money is a milestone but it is one of many that need to be reached.
People will not accept taking a step back in their lives in many ways and that is the key to Volume that leads to profits and more investment.
You can make a law but you can’t make em buy.
GM is looking at the importance of the Chinese market more than here in the States .
Plus these vehicles will be sold globally where most of the countries drive small cars and are city driven . When an automaker can produce a vehicle for someone over 5ft. tall then they have something to really sell and the range has to be greatly improved .
And where is the money going to come from for an infrastructure to plug these things in . That may be the reason Mary has been lobbying for help from our Government . Trump still wants to burn fossil fuels instead of wind or solar is that going to have to happen to generate the electricity needs for EV’s .
I wouldn’t count California out , they are the 6th largest economy in the world and that is where most tech companies are located and they are much more likely to lean towards clean energy , cars included .
” Whether the North American market follows will be the greater question.”, The greatest question is the future of gasoline. If the government continues to give out oil subsidies and artificially lower gasoline prices, NA customers will buy more gasoline vehicles based on prices, range, and “the feel of power”. The Prez will protect his campaign fundraisers. Until the administration changes, EVs will sell more in other nations that are more progressive than the “good old USA”.