GM just released a new episode of its educational EV web series in South America, claiming that EVs will soon cost the same as equivalent internal combustion vehicles.
The automaker estimates that the price of electric vehicle batteries will continue to fall in the short and medium term, as the development of new, more sustainable chemical compounds advances and zero-emission vehicles are produced on a larger scale. This will allow EVs to soon benefit from a lower production cost that translates into a final price equivalent to a combustion vehicle of similar size and characteristics.
According to market studies cited by the company, the average battery cost per kWh has almost halved in the last five years and is expected to drop another 30 percent by the middle of this decade, thanks to progressing technology and further deployment of EV models around the world. In this sense, GM projects that the new-generation Ultium batteries will cost 40 percent less per kWh than those previously designed.
This significant reduction in battery costs – coupled with increased model offerings, large investments in charging infrastructure and stricter emissions laws – has made the electric vehicle segment already the fastest growing in the global automotive market and manufacturers are able to offer models that are increasingly affordable.
In fact, GM revealed that it is already working on the next evolution of Ultium battery packs with an even more advanced composition so that its electric vehicles have a total cost of ownership compatible with higher-volume combustion models. This is expected to happen from the second half of this decade in all market segments, including compact vehicles designed for South America.
GM is paving the way for a larger rollout of EVs in South America, where it aims to lead the zero-emissions market and make Chevrolet the brand with the most comprehensive lineup of all-electric vehicles. In June, the company announced the three Chevy electric vehicles it will launch in the region starting this year, including the Bolt EUV as well as the upcoming Chevy Blazer EV and Equinox EV powered by Ultium technology.