12/03/2025
A new study reveals that replacing an electric vehicle (EV) battery could soon cost less than repairing the engine of a gas-powered car. Recurrent found that the declining cost of EV batteries is on track to make full battery pack replacements more affordable than traditional engine repairs by 2030. This aligns with projections from Goldman Sachs, which estimate that battery prices will drop to $80 per kilowatt hour (kWh) by 2026—roughly half of what they cost in 2023.
The sharp decline in EV battery prices shows no sign of slowing down. Over the past three years, battery costs have already been cut in half, and projections continue to favor consumers. Goldman Sachs anticipates prices could drop further to $64 per kWh, while other estimates, like those from RMI, suggest a dramatic low of $32 per kWh. If these trends hold, the affordability of EV ownership will significantly improve, offering substantial savings to EV drivers in the near future.