Lithuim-ion EV batteries will always cost more than ICEs, according to the Honda director.

The popularity of electric vehicles is growing nationally and globally as countries look to find ways to limit carbon emissions and incentivize consumers to go electric. As popularity increases, the cost of purchasing electric vehicles increasingly matches that of ICE vehicles. This is particularly true in Europe, where petrol cars are increasingly penalised.

When it comes to low-cost electric models, purchase prices tend to be much higher than gas-powered options, often by several thousand dollars. Offering entry-level electric vehicles at low prices is something the segment is still working on.

HondaVice President of Business and Sales for America Dave Gardner says lithium-ion batteries for electric vehicles are one of the factors keep prices high and suggests that the implementation of solid-state batteries could make a difference for manufacturers and consumers.

“We [Honda] don’t really believe that current lithium-ion technology is the long-term solution. Solid-state batteries are going to be a game-changer for us,” Gardner said.

Gardner said he believes solid-state batteries will allow entry-level electric vehicles to be priced “in the neighborhood of what a handsome [ICE] vehicle costs. Gardner also admitted that solid-state batteries likely won’t be ready for some time, and the brand’s soon-to-be-released Prologue crossover won’t feature the technology.

However, Honda recently announced a $310 million investment to help accelerate the development of solid-state batteries, proving the company is committed to making their inclusion in electric vehicles a reality as soon as possible. The company’s first mass-produced electric vehicle, the E City Car, hasn’t fared so well in the market, with just 3,752 sold in Europe last year.

The company had targeted sales of around 10,000 units, but a poor lineup and high ticket price kept consumers away.


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