Is the current trend–a plateau in demand and declining battery cell costs for EVs–part of the normal market cycle, or does it indicate something more unusual or significant?
“For the most part, the trend we’re seeing with EV batteries is part of the usual market ebbs and flows of cyclical sectors like housing and autos. When global central banks raise interest rates to address inflation, demand for interest-sensitive goods like cars and trucks will adjust to the new conditions in the marketplace. After a period of rapidly accelerating EV sales, driving demand and costs up, we’ve begun to level off and ease off that pressure. But that doesn’t necessarily mean costs will skyrocket again in a few months. In fact, battery costs across sectors have been stabilizing in recent years, indicating that this once-nascent industry is beginning to mature. And this is a boon for consumers. EV batteries constitute a significant portion of an EV’s total cost. With battery prices steadily dropping, EVs are becoming more affordable than ever.”
Is this trend–of innovation and investment driving down costs–unique to EV batteries? Or will other clean energy technologies see similar cost declines soon?
“This doesn’t just hold true to EV batteries–this is a pattern across a wide range of clean energy technologies. Tax credits for clean energy have set the stage for growth in solar panels, hydrogen, and carbon removal technologies. The US is moving ahead and will achieve a durable competitive advantage across many clean energy industries.”
|