Driving EVs toward lower cost

The race is on to reduce battery and electric-drive systems costs while improving efficiency.

Market penetration of electric vehicles has been limited by two significant constraints: driving range and purchase cost. These two factors are in fundamental opposition, because the most costly part of a battery EV is its battery. Make that battery larger to increase driving range, as Tesla Motors has done with the Model S, and the result is a retail price in the six-figure range.

Reduce the battery's size to hold down costs and the resulting driving range is unacceptably short. Indeed, despite progress on these issues, global EV sales will reach only 2.4% of all light-duty vehicle sales by 2023, predicts Scott Shephard, research analyst with Navigant Research.