Better Prices for Batteries for Electric Cars are expected soon
It looks like supply and demand is working out in the consumers’ favor when it comes to lithium-ion batteries. Production has been ramping up for the batteries as more electric cars go into production and that has led to an oversupply that may just keep piling up.
Analysts are predicting a price drop of between 19 and 25 percent by the end of the year — a slash that could also spell cheaper electric cars in the very near future.
Battery makers in Japan and Korea, like Samsung and Panasonic, account for 75 percent of the world’s production, and they’ve been competing to get the largest share of a market that could triple over the next six years. This production and pricing war has created a glut of batteries and, luckily for consumers, a falling price.
Many first generation electric vehicles are going on sale in the coming months. I won’t be surprised if the second generations, much like we’ve seen with later generation hybrids, include a cheaper price tag.