Transforming ENERGY

Battery Cost ($/kWh) 0 100 Global Trends Cost Declines in Batteries 300 Higher upfront cost of most EVs compared to internal combustion engine (ICE) counterpart is due to cost of battery. Battery pack prices have fallen 89% since 2010, despite recent supply chain issues. Figure. Projected decrease in cost of batteries, 2020-2050 Slow Advancement Moderate Advancement Rapid Advancement ☐ BNEF 2016 O Moawad et al. 2016 ▲ DOE-VTO × Interpolated * х 200 x 2020 2025 2030 2035 Source: NREL Electrification Futures Study (Jadun et al., 2017) 2040 * * * 2045 • * * USAID 2050 T 2010 Battery pack price (real 2021 $/kWh) 1,220 946 744 684 606 89% 393 302 226 185 161 140 132 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Figure. Decrease in cost of battery packs, 2010-2021 T Source: Bloomberg New Energy Finance (2022) Unsubsidized upfront price parity expected in most vehicle segments and markets by the late 2020s. Already, the lifetime operational cost of owning EVs is typically lower than the ICE counterpart due to reduced fuel and maintenance expenses. USAID ONREL FROM THE AMERICAN PEOPLE Transforming ENERGY 7

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