Lower Battery Costs for GM
Whatever the reason, GM has announced a much lower Lithium-Ion battery cost per kWh than just about anyone else. The average cost is said to be around $300/kWh while GM states they are experiencing cost of $145/kWh which is much lower to give a savings to their EV customers and make their hybrids even better. Adding to this, GM states they expects to see costs of $100/kWh or less by 2021. What does this mean for the EV market? This means many of these EV cars that seem to be priced too high compared to their gasoline counterparts should begin to experience lower prices to make the decision much more difficult on us as buyers.
In a way, as the most direct EV competition for Tesla, GM creates a scenario where Tesla has to either confirm the prices or announce theirs are better in some way. What we have learned is the $100/kWh is expected to be enjoyed by Tesla by 2020 which is about right since they don’t outsource their battery production like GM does. This certainly makes the numbers from GM very believable and gives u s a glimpse as to what we can expect from the automakers.
As for GM, the EV models currently are the Spark EV and the Volt. Neither of these models offer massive ranges from their power plants but they certainly offer a great deal of attraction which has spurned GM to create the Bolt project. SO far the release of the Bolt has been announced to take place and become a 2018 model as production should begin sometime in 2017 and some prototype mules have already been spied testing to come up with a car that will be worthy as a Tesla competitor which means a great deal of range.
So far the GM EV models have all been small in stature and the Bolt is expected to be as well. GM has announced and expected range of 200 miles and a price that will start out around $37,000 to be a model that will be easy for us to enjoy. No details yet as to the overall build and what we will get to enjoy from the Bolt, but if the price of these batteries continues to lower the price of the vehicle could easily go down as well.
Now that the numbers are out we just might see the price per kWh of these battery packs lower much quicker than expected. Hopefully the Bolt will be built with the power in the floor like the Tesla models in order to have a similar amount of engagement and balance on the road. Regardless of the price of these batteries the reality is the price of an EV is typically much higher which makes it hard to stomach paying a premium price for a car that can’t go more than 200 miles at a time. If the prices come down of these batteries and the cars become more affordable it’s likely we will see an increase in the number of EV vehicles sold.