Getting to a tipping point
Battery electric vehicle (BEV) manufacturers are trying to lower the cost and improve the driving range on a single charge.
Electric vehicles (EVs) have come of age in the last few years, driven by an urgency among governments worldwide to reduce carbon emissions in the automotive industry as part of their broader effort to cap pollution. What has helped the growing popularity of electric vehicles is their increasing affordability as the cost of batteries have come down.
The battery pack for battery electric vehicles (BEVs) used to cost over $1,100 per kilowatt hour (KWh) in 2010. Now BEV batteries costs are inching closer to $100 per kWh, making the cost of EVs comparable to traditional cars in affordability.
Interestingly, EVs preceded the automotive industry and
date back to the 1800s. They never, however, became mainstream due to intransigent behavior of consumers, lack of preparation of automakers, incomplete product infrastructure and high costs, among a plethora of factors.
But all that is history. And now, the renewed interest in EVs is for real. It is catalyzed by an all-electric agenda with a radical focus on innovators and early adopters who prize a brand's performance and image above potential detractors such as high cost and charging inconvenience. Government and state subsidies, beneficial policies for EV makers, incentives for buyers, suppliers and consumers are also helping the rapid adoption of EVs.
The BEV disruption is the most significant opportunity for e-mobility businesses that strive for substantial profits and growth. The holy grail is to find a solution to get the battery price down and the driving range up, on a single charge. This is a must to surpass the critical tipping point for BEVs or fully electric vehicles with rechargeable batteries and no gasoline engines.