The electric vehicle (EV) industry is gaining traction as numerous major automotive giants are gradually making their way into the arena to battle for the lion’s share in the market.

The substantial rise in the competition between Volkswagen Audi Group (VAG), the Stellantis Group, Daimler AG, the BMW Group, General Motors, Ford Motor, the Hyundai Group of Companies, BYD, SAIC, and GWM, etc. has resulted in tremendous innovation in EV manufacturing materials and methods, which has, in turn, reduced the development cost of EV batteries considerably.

Recent data compiled by the United States Department of Energy shows that the cost of lithium-ion battery packs fell by 87 percent between 2008 and 2021. The current cost of usable battery capacity is $157 per kilowatt-hour (kWh) as compared to $1,237 per kWh 13 years ago. The report also highlighted that the industry is racing towards $100 per kWh as the cost of usable battery capacity.

The cost is reportedly also expected to dip even more soon as it is proportional to the magnitude of progress in the chemistry level, production level, module/pack design level, and production capacity, all of which are progressing at a rapid pace.

However, car analysts still reckon that the EV industry has a long way to go before it can become a normal choice for people because of high manufacturing costs, lofty price tags, and a limited charging infrastructure that inhibits the popularization of EVs around the world.