Long Term Impact of Vehicle Electrification on Vehicle Weight and Cost Breakdown
Today’s value proposition of plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV) remain expensive. While the cost of lithium batteries has significantly decreased over the past few years, more improvement is necessary for PHEV and BEV to penetrate the mass market. However, the technology and cost improvements of the primary components used in electrified vehicles such as batteries, electric machines and power electronics have far exceeded the improvements in the main components used in conventional vehicles and this trend is expected to continue for the foreseeable future. Today’s weight and cost structures of electrified vehicles differ substantially from that of conventional vehicles but that difference will shrink over time. This paper highlights how the weight and cost structures, both in absolute terms and in terms of split between glider and powertrain, converge over time.