Quantcast
Business

Bloomberg: The Electric Car Revolution Is Here to Stay

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

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Insights/Opinion
A northern cardinal and finch in the snow. Mark Moschell / Flickr

Is Winter Miserable for Wildlife?

By Bridget B. Baker

While the weather outside may indeed get frightful this winter, a parka, knit hat, wool socks, insulated boots and maybe a roaring fire make things bearable for people who live in cold climates. But what about all the wildlife out there? Won't they be freezing?

Anyone who's walked their dog when temperatures are frigid knows that canines will shiver and favor a cold paw—which partly explains the boom in the pet clothing industry. But chipmunks and cardinals don't get fashionable coats or booties.

Keep reading... Show less
Animals
A green sea turtle, one of the animals whose population has increased because of Endangered Species Act protections. Mark Sullivan / NOAA

Marine Mammals and Turtles Protected by the Endangered Species Act Are Bouncing Back

The Endangered Species Act works. That's the conclusion of a peer-reviewed study undertaken by scientists at the Center for Biological Diversity and published in PLOS ONE Wednesday.

The study looked at 31 populations of 19 species of marine mammals and sea turtles in the U.S. that had been granted endangered species protections and found that around three-quarters of them had increased in size.

Keep reading... Show less
Climate
Students demonstrate in Brussels Thursday calling for climate action. NICOLAS MAETERLINCK / AFP / Getty Images

12,000+ Belgian Students Skip School to Demand Climate Action

Around 12,500 Belgian students marched in Brussels Thursday, joining a growing movement of young people around the world who have started skipping school to demand climate action.

"There is actually no point going to school if our world is going to die," 16-year-old demonstrator Mariam told BBC News in a video.

Keep reading... Show less
Renewable Energy
A prototype of GE's massive new wind turbine will be installed in the industrial area of Maasvlakte 2 in Rotterdam. GE Renewable Energy

World's Largest Wind Turbine to Test Its Wings in Rotterdam

Rotterdam's skyline will soon feature the world's largest and most powerful offshore wind turbine.

GE Renewable Energy announced on Wednesday it will install the first 12-megawatt Haliade-X prototype in the Dutch city this summer. Although it's an offshore wind turbine by design, the prototype will be installed onshore to facilitate access for testing.

Keep reading... Show less
Sponsored
Insights/Opinion
Colorful, fresh organic vegetables. fcafotodigital / Getty Images

A New Diet for the Planet

By Tim Radford

An international panel of health scientists and climate researchers has prescribed a new diet for the planet: more vegetables, less meat, fresh fruit, whole grains and pulses, give up sugar, waste less and keep counting the calories.

And if 200 nations accept the diagnosis and follow doctor's orders, tomorrow's farmers may be able to feed 10 billion people comfortably by 2050, help contain climate change, and prevent 11 million premature deaths per year.

Keep reading... Show less
Popular
Children's books about the environment. U.S. Air Force photo / Karen Abeyasekere

This State Might Require Public Schools to Teach Climate Change

Reading, writing, arithmetic ... and climate science. That doesn't have the same ring as the "three Rs" of education, but Connecticut could one day require the subject to be on the curriculum, The Associated Press reported.

A Connecticut state lawmaker is pushing a bill to mandate the teaching of climate change in public schools throughout the state, starting in elementary school.

Keep reading... Show less
Sponsored
Climate
NASA's ICESCAPE mission investigates the changing conditions in the Arctic. NASA / Kathryn Hansen

These Eye-Opening Memes Show the Real 10-Year Challenge

Before-and-after photos of your friends have probably taken over your Facebook and Instagram feeds, but environmentalists are using the #10YearChallenge to insert a dose of truth.

Memes of shrinking glaciers, emaciated polar bears and coral bleaching certainly subvert the feel-good viral sensation, but these jarring images really show our planet in a worrying state of flux.

Keep reading... Show less
Popular
Vial containing swab from a deceased duck, collected for testing during the 2014-2015 avian influenza outbreak. © 2015 Erica Cirino, used with permission.

Could Trump’s Government Shutdown Cause Outbreaks of Wildlife Disease?

By Erica Cirino

The current U.S. government shutdown could worsen ongoing wildlife disease outbreaks or even delay responses to new epidemics, according to federal insiders and outside experts who work with federal wildlife employees.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!