Cheat sheet: Two facts explain why electric lorries will become a lot cheaper

Fact 1: Batteries account for 40-60% of a commercial vehicle’s capital cost… if it’s electric. Their level of battery input cost is usually much more than with other types of vehicles. 

Fact 2: Battery prices keep on falling. They are 82% cheaper now than 10 years ago. Average prices for lithium-ion batteries are expected to drop from $139 per kilowatt-hour last year to $80/kWh by 2030.

Now let's consider the Scania EV lorry purchased by South Africa retailer Shoprite. In 2013, the 300 kWh battery of the vehicle would have cost $234,000. By 2023, the price dropped to $41,700. And by 2030, it is projected to cost only $24,000.