Quantcast

Bloomberg: The Electric Car Revolution Is Here to Stay

Business

Within six years, the cost of owning an electric car will be cheaper than purchasing and running a petrol or diesel model. That’s the conclusion of a report on the fast-expanding electric car market by Bloomberg New Energy Finance.

The report says that even if petrol or diesel driven cars improve their fuel efficiency over the coming years, the cost of owning an electric car—buying it and running it—will be below that of conventional vehicles by 2022.

The cost of owning an electric car—buying it and running it—will be below that of conventional vehicles by 2022. Photo credit: Wikipedia

The increased sale of electrically-powered cars is seen as an important element in the fight against climate change. CO2 emissions from vehicles fueled by petrol and diesel cause a build-up of greenhouse gases and, especially in cities, pollution from exhausts causes serious damage to health.

Worldwide Sales

Bloomberg says electric vehicle (EV) sales worldwide reached just under half a million in 2015—a 60 percent rise on the previous year. Although electric-powered cars make up only one percent of the global vehicle total at present, it is predicted that worldwide EV sales will be more than 40 million by 2040, making up approximately 35 percent of all light duty vehicle sales.

 

The report’s authors say developments in battery technology are one of the key factors driving the downward trend in prices in the electric car market.

“At the core of this forecast is the work we have done on EV battery prices,” said Colin McKerracher, a Bloomberg analyst.

Lithium-ion battery costs have already fallen by 65 percent since 2010, reaching $350 per kilowatt hour (kWh) last year. We expect EV battery costs to be well below $120 per kWh by 2030 and to fall further after that as new chemistries come in,” added McKerracher.

To date, two types of electric car have been produced for the mass market: a battery electric vehicle (BEV) is solely dependent on batteries for power, while a plug-in hybrid electric vehicle (PHEV) uses a combination of rechargeable batteries and a conventional engine as back-up.

Recent improvements in battery technology mean that a BEV can travel up to 200 miles without recharging.

Electric vehicle manufacturers say that as more sales are achieved, manufacturing costs will drop as economies of scale are achieved.

Various electric-powered sports models manufactured in the U.S. and Europe have tended to grab the headlines recently, but the main sales growth in future is likely to take place in China.

At present, the U.S. continues to be the world’s biggest EV market, although it is Japan’s Nissan Leaf that heads electric car sales.

The government in China, faced with tackling serious pollution problems in many cities, is giving big subsidies to the country’s electric car manufacturers.

Incentives to Buyers

It is also offering incentives to buyers, in terms of lower insurance premiums and road taxes, discounted charging facilities and access to urban road networks when other vehicles are banned due to high pollution levels.

Xindayang, a Chinese manufacturer, is marketing electric vehicles in China at a cost of $10,000—much cheaper than EVs elsewhere.

Chinese EV manufacturers have global ambitions. Faraday Future, a China-backed EV maker, recently announced plans to invest more than a billion dollars in a manufacturing plant in the U.S.

China is also investing heavily in the necessary infrastructure for EVs. The State Council—the main law-making body in China—announced last year that facilities would be developed to handle up to five million plug-in vehicles by 2020.

YOU MIGHT ALSO LIKE

Koch Brothers Plotting Multimillion Dollar War on Electric Vehicles

Elon Musk Shows His Love for Dramatic Tesla Video With Powerful Message

The Ultimate in Off-Grid Transportation: Mini-Fleet-in-a-Box

Driving Cars Powered by Organic Solar Cells Might Be Closer Than You Think

EcoWatch Daily Newsletter

Waterloo Bridge during the Extinction Rebellion protest in London. Martin Hearn / Flickr / CC BY 2.0

Money talks. And today it had something to say about the impending global climate crisis.

Read More Show Less
Sam Cooper

By Sam Cooper

Thomas Edison once said, "I'd put my money on the sun and solar energy. What a source of power!"

Read More Show Less
Sponsored

Zero Waste Kitchen Essentials

Simple swaps that cut down on kitchen trash.

Sponsored

By Kayla Robbins

Along with the bathroom, the kitchen is one of the most daunting areas to try and make zero waste.

Read More Show Less
A NOAA research vessel at a Taylor Energy production site in the Gulf of Mexico in September 2018. NOAA

The federal government is looking into the details from the longest running oil spill in U.S. history, and it's looking far worse than the oil rig owner let on, as The New York Times reported.

Read More Show Less
Golde Wallingford submitted this photo of "Pure Joy" to EcoWatch's first photo contest. Golde Wallingford

EcoWatch is pleased to announce our third photo contest!

Read More Show Less
Sponsored
Damage at the Malheur National Wildlife Refuge from the 2016 occupation. USFWS

By Tara Lohan

When armed militants with a grudge against the federal government seized the Malheur National Wildlife Refuge in rural Oregon back in the winter of 2016, I remember avoiding the news coverage. Part of me wanted to know what was happening, but each report I read — as the occupation stretched from days to weeks and the destruction grew — made me so angry it was hard to keep reading.

Read More Show Less
Computer model projection of temperature anomalies across Europe on June 27. Temperature scale in °C. Tropicaltidbits.com

A searing heat wave has begun to spread across Europe, with Germany, France and Belgium experiencing extreme temperatures that are set to continue in the coming days.

Read More Show Less
Skull morphology of hybrid "narluga" whale. Nature / Mikkel Høegh Post

In the 1980s, a Greenlandic subsistence hunter shot and killed a whale with bizarre features unlike any he had ever seen before. He knew something was unique about it, so he left its abnormally large skull on top of his toolshed where it rested until a visiting professor happened upon it a few years later.

Read More Show Less