Electric Car Battery Prices Fall: When Will Car Prices Follow?

A claim that the batteries of an electric car account for 25% of its cost are nothing more than an economic happenstance (batteries account for twice that percentage , 52%, in a Tesla Model S with the 300 mile battery pack). Put that 300 mile pack into a Leaf and suddenly that $38K Leaf would cost $68K, an absurdity. No one would claim that the Leaf, with a paltry 75 mile range, is the EV of the future. Smaller battery packs also mean shorter lived packs, since they would have to undergo many more recharge cycles than larger packs. Tesla's intelligent strategy of buying the cheapest li ion batteries, in the form of laptops, is still providing them (and the upcoming Toyota Rav 4 electric) with cost advantages over the larger automakers.

Full article: http://www.greencarreports.com/news/1075482_electric-car-...

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