JB Straubel says industry sales estimates predicting EVs will account for 12.7% of all U.S. auto sales by 2025 may be too low.
Straubel says industry sales estimates predicting EVs will account for 12.7% of all U.S. auto sales by 2025 may be too low."If you look at how fast adoption is growing in parts of Europe and other parts of the world, I think it points to a path of potentially even higher percentages than that by mid-decade" he said.
Meanwhile, lithium-ion battery production is looking to keep pace with EV automakers. The global capacity for lithium-ion battery manufacturing was 713 gigawatt hours last year, according to AlixPartners, an automotive industry consulting firm. By 2025, AlixPartners expects that number to more than triple to 2,273 gigawatt hours, with U.S. EV battery production more than quadrupling.
ESource, a consulting firm based in Boulder, Colo., which tracks battery cell prices, estimates the cost per kilowatt hour of an automotive battery cell will drop from $147 in 2022 to $98 by 2025. While those projections are encouraging, falling prices are contingent upon the battery supply chain growing and being able to support stronger demand.
However, Straubel is not convinced the EV battery industry will be ready to meet the stepped-up demand.
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