Part 3/10:
China’s already substantial production capacity raises critical questions regarding supply and pricing in the electric vehicle (EV) market. With a significant oversupply of battery production, prices have plummeted. Bloomberg recently noted instances of prices dipping to just $53 per kilowatt-hour, a benchmark predicted for 2030-2035. This declining cost of batteries—constituting 20-40% of the value of an electric car—has led to a decrease in EV prices, especially in China where affordable models have emerged costing as little as $10,000 to $20,000.