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According to Yonhap News,

(SEOUL=Yonhap News) The share of electric vehicles in the global auto market is expected to glaze a double-digit level in five years on falling battery prices and tougher environmental rules in major economies, a report showed Tuesday.

The ratio of EVs to global auto sales is predicted to reach 5 percent in 2020 before increasing to up to 9 percent five years later, according to the report by global market tracker Energy Trend. Last year, the proportion of EVs out of total vehicle sales across the world stood at a mere 1 percent.

The report cited a downturn in battery prices and rising international oil price, global efforts to cut carbon dioxide (CO2) emissions and China's drive to expand the EV market.

Despite the increased price of cobalt, a key raw material, the production cost of EV batteries is projected to keep falling thanks to the development of new advanced technologies.

Prices of lithium ion batteries are expected to range from US$250 to $300 per kilowatt hour (kWh) this year, compared with a $400-$600 band last year, before falling below $200.

In addition, sales of EVs are expected to jump in the coming years thanks to an increase in their per-charge range. Currently, EVs can travel 200 to 400 kilometers per charge, but the range is forecast to go up sharply.

The report also said tougher environmental regulations worldwide may drive sales of EVs as major economies are moving to cut their carbon dioxide emissions targets as part of efforts to cut greenhouse gases.

In addition, the EV market will likely gain a boost from China's policy efforts to expand the use of EVs, which are designed to promote its battery industry, according to the report.

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Source: Yonhap News (July 17, 2018)