How do tariffs affect battery prices?

Tariffs increase the cost of imported batteries, which can: Raise prices for U.S. manufacturers who rely on Chinese batteries or components. Slow down the adoption of electric vehicles due to higher battery costs. Increase costs for renewable energy storage systems, affecting grid modernization efforts.

What are the estimated battery costs?

The estimated battery costs incorporate DOE’s understanding of battery production volumes for the different vehicle classes and capture the various prices that OEMs across the market experience. The costs discussed in this report represent a point in time reflective of current market conditions.

How does Doe reduce the cost of new vehicle technology?

DOE also expands medium and heavy-duty vehicle classes previously analyzed and updates results based on current costs of technology. Reducing the cost of new vehicle technology for consumers is a central focus of DOE R&D efforts and has led to substantial reductions in the cost of plug-in and fuel cell vehicles over time.

Which determinant determines incremental purchase cost for BEVs and PHEVs?

For BEVs and PHEVs, battery costs comprise the majority of the incremental manufacturing cost difference and thus are the primary determinant in modeling incremental purchase cost for these vehicles. Additional relevant manufacturing costs include electric powertrain components and may also include materials.