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Given these tightening international market conditions, many automakers may must prioritize operational investments, making it tougher to justify large capital allocations in a time of uncertainty. This scenario may additionally destabilize most of the strategic partnerships which may be developing between traditional producers and the suppliers shouldering a significant amount of the general investment in these technologies. In addition, the worth premium for a battery-powered car ought to come down as battery production increases. In fact, battery costs have dropped by almost 50 percent since 2013, from US$599 per kilowatt hour to US$273 per kilowatt hour in 2016. Prices will likely fall even further, doubtlessly hitting US$100 per kilowatt hour by 2026,27 making BEVs extra price-competitive with conventional autos and, finally, a extra attractive option to consumers.

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The additional out the funding window goes, the harder it will be for most gamers to justify and keep their spending on growth. For this purpose alone, it is probably that corporations should make some hard choices in terms of which know-how funding bets they are able and keen to make. Sooner or later standards might be imposed on all of this new know-how. History suggests the fragmented nature of regulation across markets will play out here as well. Standards symbolize both an opportunity to moderate technology growth and funding toward clearer targets, in addition to a threat to undermine any aggressive advantage for first movers.