Connect with us

Hi, what are you looking for?

In a new report, BNEF predicts electric cars will become price competitive with conventional cars by 2022. Perhaps the EV revolution is really happening?


BNEF Shocker — Electric Cars Price Competitive In 2022 As Battery Costs Plummet

In a new report, BNEF predicts electric cars will become price competitive with conventional cars by 2022. Perhaps the EV revolution is really happening?

The advanced transport team at Bloomberg New Energy Finance is constantly analyzing the price of electric cars to see when they will be price competitive with conventional cars. In 2017, the team suggested it would happen in 2026 — under a decade away at that time — and everyone went “Wow! The time for electric cars is almost here.” A year after that, BNEF said 2024 would be the year.

electric car battery prices

Now another year has gone by and BNEF has adjusted its forecast once again. 2022 is now the year it believes electric cars will become price competitive with cars powered by gasoline or diesel engines.

Why the rapid shortening of the projected timeline? Plunging battery costs. For a midsize US car in 2015, the battery made up more than 57% of the total cost. This year, it’s 33%. By 2025, the battery will be only 20% of total vehicle cost, according to BNEF.

It says price parity will come first for large vehicles in the EU and then spread throughout the transportation sector. A report in ThinkProgress adds that BNEF also forecasts the cost of electric motors and powertrain control systems will drop by a third in the next few years as more of those components are produced by manufacturers worldwide and economies of scale kick in.

When price parity is achieved, shoppers will make their buying decisions based on brand preferences, styling, performance criteria, or the constant pursuit of the next new thing rather than just the sticker price of the vehicles they are considering, and incentives will no longer be needed to drive the EV revolution forward.

It’s Not Just Cars

Falling battery prices will affect other vehicles, like construction equipment, ships, and airplanes, BNEF says. For instance, Komatsu just introduced a small all-electric excavator with this announcement:

“Equipped with an in-house developed new charger, high-voltage converter and other devices, it offers excavation performance on par with the internal combustion model of the same power output, while achieving zero exhaust gas emissions and a dynamic reduction in noise levels. It is an environment and people-friendly machine. Komatsu expects a wider range of applications for this machine, including construction work near hospitals or schools or in residential areas, where contractors have conventionally paid special attention to exhaust gas and noise during work, as well as inside tunnels or buildings.”

CleanTechnica has reported frequently on electric ferries and ships. Stena Lines operates ferries between Sweden and Denmark is adding batteries and electric motors to its vessels. “As both the size and cost of batteries decrease, battery operation becomes a very exciting alternative to traditional fuels for shipping, as emissions to air can be completely eliminated,” Niclas Martensson, CEO of Stena Lines, tells BNEF.

Smaller, cheaper batteries will also give a boost to electric airplanes and eVTOL aircraft, topics that Nicolas Zart writes about frequently.

Those of us in the CleanTechnica community have been waiting impatiently for price parity to come to electric vehicles. Now is appears the wait is almost over.

Check out our brand new E-Bike Guide. If you're curious about electric bikes, this is the best place to start your e-mobility journey!
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

Steve writes about the interface between technology and sustainability from his homes in Florida and Connecticut or anywhere else the Singularity may lead him. You can follow him on Twitter but not on any social media platforms run by evil overlords like Facebook.


You May Also Like


In a recent Ted talk that took place at the Tesla Gigafactory Texas, Elon stated that the world would need 300 TWh of battery...


Everyone who follows electric vehicle news knows there is a certain amount of fear, uncertainty, and doubt (FUD) online. Consequently, it can sometimes be...

Clean Power

Although “blue” hydrogen is cheaper today than “green” hydrogen the situation should reverse by 2030. Blue hydrogen is made from natural gas backed up...


YUNEV, CalStart, and the California Air Resources Board (CARB) Hybrid and Zero-emission Truck and Bus Voucher Project (HVIP) teamed up to conduct a cost...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.