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One of the primary driving factors behind the surge in EV adoption is the falling cost of battery packs. Over the past year, prices have dropped by more than 20%, reaching an astonishing low of approximately $61 per kilowatt-hour at a recent auction in China. This unprecedented decline signifies a departure from traditional pricing models and suggests that the cost of battery storage technology is set to decrease further.
The implications are clear: as battery costs continue to fall, electric cars will become more affordable. Notably, by 2026, the tipping point may occur when internal combustion engine vehicles lose significant resale value, mirroring the rapid obsolescence of old mobile phones like the Blackberry and Nokia 3310.