As the demand for EVs skyrocket, car makers are working to make prices more affordable.
Key details
Despite battery costs being high, car makers are working to make high-performing electric vehicles (EVs) more affordable.
- General Motors announced a Chevrolet Equinox EV that will be priced around $30,000 with a range of 250 miles.
- Nissan will continue to manufacture the Leaf, with an MSRP of $27,400.
- Mini Cooper SE comes in around $29,900, with slightly improved range.
- The popular Chevrolet Bolt comes in around $31,000), the Mazda MX-30 at $33,470, and the Hyundai Koda at $34,000, according to Edmunds.
This $30,000 price point is key to getting buyers to switch to electric from gasoline powered cars, analysts say.
Nissan will continue to manufacture the Leaf, with an MSRP of $27,400.
Mini Cooper SE comes in around $29,900, with slightly improved range.
The popular Chevrolet Bolt comes in around $31,000), the Mazda MX-30 at $33,470, and the Hyundai Koda at $34,000, according to Edmunds.
This $30,000 price point is key to getting buyers to switch to electric from gasoline powered cars, analysts say.
The price for EVs in the U.S. could continue to go down. The new Inflation Reduction Act is implementing up to $7,500 in tax credits for certain EVs.
Why it’s important
Recently, the demand for EVs has taken off. Minerals such as lithium, copper, cobalt, and nickel are key components to EV battery production and prices for them are high, but companies are working to make the vehicles accessible to more people.
Until recently, EVs were expensive and marketed as luxury cars. Now more automakers are working to make EVs high performance and lower priced.
In order to receive the $7,500 credit, the vehicles and batteries have to be assembled in North America, and the new law phases in requirements that battery minerals and parts have to come from the continent. Most minerals such as lithium, a key battery ingredient, are currently imported from China and other countries, according to AP News.
These requirements have caused big car makers to seek factories in the U.S. for battery production. Toyota, Ford,and Honda are a few of the many announcing big projects in the U.S.
These companies building battery plants in the U.S. will dramatically decrease the price of EVs. If all materials can be sourced internally and they will receive a tax credit for the vehicle the prices would be more obtainable for many.
Backing up a bit
More than half of car buyers worldwide want an EV. The number of people wanting electric vehicles (EV) has hit a worldwide tipping point.
The latest EY Mobility Consumer Index shows that 52% of people looking to buy a car want to buy an EV. This is the first time the number has exceeded 50%, representing a rise of 11 percentage points since last year.
Recently, President Joe Biden signed a climate and healthcare law called the Inflation Reduction Act. The new bill includes a $369-billion investment in climate and energy policies.
The billions in climate and energy investment will boost renewable energy infrastructure in manufacturing, like solar panels and wind turbines, and include tax credits for electric vehicles and measures to make homes more energy efficient.
