Contemporary Amperex Technology Co. (CATL) has not only developed a battery with an impressive warranty of up to 932,000 miles (1.5 million kilometers) or 15 years, but also has a game-changing plan in the works. CATL has announced its intention to reduce lithium battery prices by a staggering 50% by mid-year. This significant cost reduction could potentially make EVs more affordable and accessible to a wider consumer base, marking a major shift in the EV market dynamics.
The expense of batteries, a major factor in EV prices, and eventual battery replacement are two factors keeping some consumers away from EV purchases. What’s important is producing sufficient batteries to put EVs at a price point that is attractive for 50% of car buyers. Low-mileage cars might now be able to last nearly as long as a human lifespan, and EV resale values could soar.
So far, the consensus is that making batteries last even longer is excellent. However, the cost of the battery is, at this point, far more relevant. Lowering the price by 50% is substantial and further de-risks buying an EV.
