DOE research aims to reduce the cost of batteries

In its role leading and undertaking research and development that enables vehicle manufacturers to adopt new, efficient technologies, the U.S. Department of Energy’s (DOE) Vehicle Technologies Office (VTO) works to reduce initial electric vehicle (EV) costs — or the cost of the vehicle for the buyer at the time of acquisition. Reducing this initial vehicle cost is relevant to supporting the adoption of new, efficient, and clean mobility options that are affordable for all Americans. When combined with the lower fueling and maintenance cost of an EV, reduced initial vehicle cost enables substantial overall cost savings for American consumers. DOE’s support of EV and battery research has helped drive the downward trajectory of EV and battery costs to date. The VTO expects the costs of batteries to continue to decline. VTO has set research and development program targets of $75/kWh for battery packs by 2030 and expects initial cost parity of EVs with internal combustion engine vehicles (ICE) to be reached over the next 5 to 7 years.

Market analysis of Incremental EV Purchase Costs

The reports on this webpage document DOE’s approach for determining an incremental purchase cost for an EV – a plug-in hybrid electric vehicle (PHEV), battery electric vehicle (BEV), or fuel cell electric vehicle (FCEV) – compared with comparable ICE vehicles, using current market costs (as opposed to future costs based on lab scale R&D). DOE will continue periodic reviews of technology and the market to document changes in incremental purchase costs. DOE expects that the next update will be completed in calendar year (CY) 2024, for CY2025 vehicles, and, as new reports are generated, they will be archived below.

Reports:

Projected Incremental Purchase Cost for Electric Vehicles Acquired in CY2023 and CY2024:

Archive:

Projected Incremental Purchase Cost for Electric Vehicles Acquired in CY2023