Does pure electric vehicles have a future only if battery density and efficiency are improved?

In recent years, the development speed of electric vehicles in my country has been very rapid. Under the promotion and support of national policies, electric vehicles are very popular among consumers. However, it still cannot cover up the flaws. For example, the price of electric vehicles is generally higher than that of fuel vehicles with the same configuration. So in the next five years, is it possible for electric vehicles to be cheaper than fuel vehicles?

First of all, the manufacturing cost of electric vehicles is much higher than that of fuel vehicles. Generally speaking, the price of batteries accounts for more than half of the cost of the entire vehicle. Most electric vehicles now use ternary lithium batteries, some of which contain rare metals that are relatively expensive and cannot be replaced. This has led to the inability to effectively reduce the price of batteries for pure electric vehicles.

For electric vehicle batteries, the problem of battery degradation is also very troublesome. Many reasons have led to the shorter service life of pure electric vehicles than fuel vehicles, and the cost performance has become lower. The second is the research and development cost of electric vehicles. With the continuous advancement of technology, the battery density and efficiency of pure electric vehicles are getting higher and higher, but there are also many technologies that need to be constantly updated and improved. This has caused many new energy vehicle companies to invest a lot of money in the research and development of technology. Coupled with the subsequent promotion costs, the cost will naturally increase.

Finally, as subsidies for new energy vehicles gradually decline, the increase in production costs will naturally lead to lower profits. In order to maintain the production and operation of enterprises, the price of electric vehicles will inevitably increase. After the original production profit balance is broken, how to reduce costs while ensuring product quality has become the biggest problem. Judging from the current level of development of electric vehicles, this is still very difficult to do.

In summary, although the development of electric vehicles has reached a relatively mature stage, there are still many problems to be solved. Moreover, compared with fuel vehicles, consumers are not very receptive to electric vehicles. In the next five years, it is still unrealistic for the price of electric vehicles to be lower than that of fuel vehicles.