EVs Appear to Have Passed Their Tipping Point
Electric vehicles have broken free of the oil price cycle that governed their previous adoption waves. While earlier sales surges typically collapsed when energy prices fell and the underlying economic case evaporated, the current expansion rests on an entirely different foundation. The self-reinforcing economics of battery manufacturing have completely changed the economics of owning a battery electric vehicle (BEV). Battery storage costs have dropped by roughly 93% since 2010 as the production learning curve has compounded with every expansion of manufacturing scale. For every doubling of total output across the industry, unit costs have historically fallen by approximately 9%. That dynamic has generated more than enough momentum…