Conference Presentation Summary
Direct manufacturing cost of BEV vs ICE
Reference: FEV Consulting Inc., U.S. EPA, 45th International Vienna Motor Symposium
Background
The U.S. EPA has established stringent CO2 tailpipe limits for passenger cars and medium-duty vehicles starting M 2027. We have covered these in an earlier post. The rule will require a fleet averaged 50% reduction in CO2 emissions for light-duty vehicles, over MY 2027 – 2032. The rule, while technology neutral, is clearly expected to promote electrification, and by EPA estimates (shown in the figure) over half of the new vehicle sales will be fully battery electric by 2032.
The EPA, in setting such rules, analyze the cost-effectiveness of new technologies. In a talk delivered at the Vienna Symposium, an example of such an analysis was provided, and we summarize it here. Note that this is limited to direct manufacturing cost, does not cover the markups leading to end customer price and also any reference to the CO2 reduction potential.
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