Electric Vehicle Ownership Costs Expected to Match Gasoline Cars by 2026
The rapid decline in electric vehicle battery prices indicates a radical shift in the automotive industry, potentially accelerating the transition towards environmentally friendly transportation on a
October 10, 2024, 11:37 pm

Electric Vehicle Ownership Costs Expected to Match Gasoline Cars by 2026

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A recent report by Goldman Sachs Group reveals expectations of a significant drop in electric vehicle battery prices, surpassing previous forecasts.

This decline is attributed to two main factors: technological advancements leading to increased battery energy density, and falling prices of green metals used in their manufacture.

According to the report, the global average battery price decreased from $153 per kilowatt-hour in 2022 to $149 in 2023.

This decline is expected to continue, reaching $111 by the end of this year, and about $80/kWh by early 2026, representing a nearly 50% decrease compared to 2023.

Nikhil Bhandari, co-head of APAC Natural Resources and Clean Energy Research at Goldman Sachs, stated that technological innovations have led to the release of new products with 30% higher energy density and lower cost.

He also noted that the decline in battery metal prices, which account for about 60% of battery costs, significantly contributes to price reduction.

According to the International Energy Agency report, electric vehicle batteries represent between 30% to 40% of the total cost of an electric car.

With battery prices expected to fall, Bhandari anticipates that the cost of owning electric vehicles will equal that of gasoline cars in the United States starting from 2026, without the need for government support.

These developments indicate the possibility of a major shift in the global car market, with expectations of a strong return in demand for electric vehicles in 2026, and the beginning of a consumer-driven, widespread adoption phase.

This shift is likely to lead to radical changes in the automotive industry and manufacturer strategies, as well as impacting government policies related to transportation and the environment.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”