Implications for Europe The European EV market, already navigating policy shifts and subsidy reductions, must adapt to the evolving landscape. While the price drop is a positive development for affordability, it also intensifies the need for strategic investments in battery manufacturing and supply chains within Europe to remain competitive.
The report forecasts that battery pack prices will fall below the $100/kWh benchmark by 2026—considered a critical tipping point for EV affordability. In China, where battery EV prices have already undercut their gasoline-powered counterparts, this milestone has been achieved ahead of schedule.
Looking further ahead, BNEF predicts that battery pack prices could reach as low as $69/kWh by 2030. However, geopolitical uncertainties and policy changes remain potential disruptors to this optimistic outlook. Challenges Ahead Despite the price drop, several challenges continue to loom over the EV battery market:
Despite the price drop, several challenges continue to loom over the EV battery market: Geopolitical Tensions: Trade policies, such as potential tariffs on Chinese imports proposed by U.S. President-elect Donald Trump, could significantly alter global battery pricing and supply chains.
“Another reason [why EV battery plants are primarily cancelled in Western Europe] is that there were more investments planned in Germany, Sweden, Italy, Spain and the UK in the last five years than in CEE countries. Therefore, the dropoff is larger as well,” Stoop added.
Europe’s electric vehicle (EV) market has slowed in the first half of 2024, forcing automakers to scale back their ambitions.
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