Electric vehicles will be cost-competitive with combustion-engine cars by 2022, according to a new report by transportation analysts at Bloomberg New Energy Finance (BNEF).

Electric vehicles will be cost-competitive with combustion-engine cars by 2022, according to a new report by transportation analysts at Bloomberg New Energy Finance (BNEF). The trend is due to the plunging price of EV batteries. Batteries made up 57 percent of an electric vehicle’s total costs in 2015. Today, that number is down to 33 percent, and it is expected to drop to 20 percent by 2025.

The new forecast highlights the rapid development of EV technologies globally. BNEF first suggested in 2017 that electric cars would become cost-competitive with conventional cars in 2026. A year later, BNEF changed it to 2024. The analysts argue that this competitive pricing will allow customers to make a choice between a combustion or electric car based on style, performance, and preference — not cost.

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