Based on a report financed by the
Institute of Automotive Technology,
Munich, Germany.
Percentages used in calculating costs
of an Internal Combustion Engines (ICE),
and a GM Bolt Electric Vehicle (BEV)):
ICE Drivetrain 24%,
(Engine, transaxle, auxiliary units, etc.)
BEV Drivetrain, excluding batteries, 8%,
(Electric Motor, Inverter, etc.)
The cost of the vehicle,
excluding the drivetrain,
is assumed to be the same
for both ICE and BEV vehicles.
GM’s gross profit
in 2018 was 19.4%,
so GM’s estimated
total cost of
an ICE vehicle
was 80.6% times
the MSRP price.
The resulting ICE
drivetrain cost
is 24% of this cost,
or $7,076,
as shown in the table.
The next step
was to determine
the drivetrain costs
of a GM BOLT using
a Li-Ion battery pack
when the battery pack
costs are $200,
$100 and $80 per kWh.
When the battery cost
is $200 per kWh,
the total drivetrain cost
of a BOLT is $14,752,
which is more than double
the cost of the ICE drivetrain.
The total drivetrain cost
of a BOLT decreases
as the cost of the
battery pack decreases.
Based on these calculations,
the cost of Li-Ion battery packs
must be $80 per kWh, or less,
before BEVs will be competitive
with ICE vehicles, ignoring
the shorter range before
a "fill up".
This assumes people
will be satisfied with
a range of 238 miles,
which is the BOLT’s range
using a 60 kWh battery.
ICE vehicles have a range
of about 400 miles.
Achieving a range
of over 300 miles
requires increasing
the size of the
battery pack.
The battery pack costs
must be $60 per kWh
for the BEV to be range
compatible with ICE vehicles.
(400 miles)
Most people believe
the current cost of Li-Ion
battery packs is around
$200 per kWh.
This study estimates
that the battery pack cost
must be $80 per kWh, or less,
for BEVs to begin to be
economically competitive
with ICE vehicles
-- $60 per kWh, or less,
with the same 400 mile range.
