A study released recently by McKinsey & Company says that, because of falling battery prices, electric vehicles are inevitable. Shifting prices will make electric cars cost-competitive with gasoline in the 2020’s. That would erase one of the two resistance factors to buying an electric car: the price. The other resistance factor, electric car driving range, will be erased along the way, according to the report.
McKinsey, a business management consulting company, published the study on its website late last week. Researchers developed a cost model for battery packs based on 40 underlying cost factors. With it they identified three factors that would accelerate the mass adoption of electrified vehicles, by decreasing the cost for battery packs, and improving the total-cost-of-ownership.