The battery makes up roughly 50% of the cost of an electric car. The cost of the battery is therefore the main problem plaguing producers and prospective consumers of electric vehicles. For example, the Nissan Leaf, which was released with a price tag of $33,000, comes with a battery that costs Nissan around $15,000 to produce.

Presently, electric cars are powered on Lithium-Ion based battery packs. One might expect that as more demand occurs for electric cars, then the price of battery packs will fall. There are conflicting arguments here as many of the aspects of the costs of producing batteries will not respond to traditional economies of scale, or are in fact already quite efficient.

Firstly, let’s look at the breakdown of the cost of producing a car-sized Lithium-Ion battery. Data comes from a National Academy of Sciences Study.

• Assembled Parts (battery pack enclosure and electronic components) – 32%
• Research and Development – 14%
• Materials (mainly ‘paste’ components, such as Nickel, Manganese, Lithium) – 12%
• Labour – 11%
• Other Costs (Overhead, equipment, profits) – 32%

Costs such as labour are unlikely to be pushed down as highly skilled labour is required to produce batteries; factory workers need to have an understanding of high voltage and chemical risks associated with the production of batteries.

Material costs, such as the metals that go into the battery paste are also considered unlikely to fall, and could in fact rise under the increased demand.

The assembled parts category is mixed because a number of the electronic components in batteries such as the sensors are already mass produced. There is some room for movement in the battery enclosures cost however.

The section of costs named ‘other costs’ is also an area that can fall with increased efficiency in management and competition in the marketplace.

There are a number of estimates being thrown around on how much the price of batteries can fall. The US Department of Energy set a goal for a 70% reduction of battery pack costs by 2014. Many researchers and companies themselves do not believe this level of cost reduction will come around until 10-20 years have passed.

Probably the most optimistic estimate by battery producers comes from Johnson Controls Inc who has suggested that they can reduce battery costs by 50% in the next five years.

If we look at mobile phone and laptop computer battery prices, which also use Li-Ion technology, then a National Academy of Sciences survey reported a price drop of only 35% between the years 2000-2008 as demand for batteries increased considerably.

If battery costs fall by 50% and we have a rough battery cost for a car at $7500, then we’re still looking at a significant hurdle, as many petrol cars of similar performance are being sold to customers at $13,000.

Until then, we can look to government subsidies and increased efficiency in manufacturing under current technology levels. Perhaps the greatest thing we can hope for is a significant discovery in battery technology to move us towards the cheapest, safest and most powerful batteries available.

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Volkswagen Jetta TDI

At under $25,000, the VW Jetta TDI marks the spot in environmentally friendly vehicles. Although it is not an electric vehicle, it features a diesel engine that offers more than 30 miles per gallon and some users report upwards of 50 miles per gallon on the highway. This environmentally friendly car is saving the air by emitting less harmful elements into the atmosphere while also saving owners valuable fuel expenses. It comes in just under $10,000 less than Audi’s similar model, the A3.

Toyota Prius Hybrid

Even though the Prius was inundated with recalls recently, it has resurfaced with a much safer and sleeker design. Getting more than 50 mpg, the Prius is well worth the $20,000 that one may pay for it. This electric/fuel hybrid vehicle is a great contribution to the environmentally friendly car lineup.

Ford Fusion Hybrid

This American-made hybrid hits the charts with roughly 40 mpg. Yes, drivers realize approximately 10 miles less per gallon then the popular Toyota Prius, but passengers get increased legroom in return. This sporty-looking hybrid is a great addition to the hybrid lineup. This stylistic vehicle appears to be identical to its non-hybrid model.

Nissan Leaf

This uniquely designed electric car hits the charts at roughly $33,000, but holds a charge for approximately 100 miles. This stated price comes equipped with all the conveniences including navigation, Bluetooth, iPod ports and satellite radio.

Tesla Roadster

If a costly luxurious sports-like electric car sounds appealing, consider the amazing Tesla Roadster. Coming in at just over $100,000, the Roadster logs a whopping 245 miles per charge with a 288 horsepower. This is truly an over achieving electric car that out performs nearly all the electric vehicles on the market. Driving beside it, one will not predict that this speedster is power by an electric motor. If one is searching for a stylistic, sporty, hip-looking electric car that will preserve the environment, the Tesla Roadster is an excellent option to consider.

Miles Walker looks at the best places to get a car insurance quote over at CarinsuranceComparison.Org. His latest article reviewed Virginia car insurance.

In the meantime , Hazem Abd Rahman, MD, Sime Darby automobile Connexion Sdn Bhd, the exclusive distributor for Ford cars in Malaysia, recounted both models would cater for the growing wants of all Malaysians.

He announced the ecoboost engine models are predicted to sell better than the earlier models which launched in 2009. The new Ford Mondeo Titanium will retail between RM180,000 and RM185,000 while the Ford S-Max will sell between RM185,000 and RM188,000 on-the-road.

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