A recent study conducted by the McKinsey & Co says that the lithium-ion batteries, which have been used in the electric cars, are expected to decline as much as 70 percent by year 2025. According to the study, the automakers will be forced to make more of electric cars due to rising oil prices and stringent fuel economy standards.
The study further adds, "Cheaper batteries could enable the broader adoption of electrified vehicles, potentially disrupting the transportation, power and petroleum sectors." McKinsey predicts that the prices of the lithium-ion batteries, which are currently available in the range of $500 and $600 per kilowatt hour, will fall to as low as $200 in 2020 and to $160 by 2025.
As per a statement give by Ford Motor Co's Chief Executive Officer Alan Mulally in April, the company’s first electric passenger car Focus electric can cost in the range of $12,000 and $15,000. Which shows that Ford Motors Paid $652 per kilowatt hour.
As per a statement given by McKinsey consultant Russell Hensley in a recent interview, "Regulation around the world, not just in one region, is getting increasingly stringent."
