Samsung SDI: Low Gas Prices Won’t Hurt Electric Car Growth

MAR 1 2015 BY ERIC LOVEDAY 15

Samsung SDI: Our Next Technology Roadmap

Samsung SDI: Our Next Technology Roadmap

Samsung SDI battery cells

Samsung SDI battery cells

Further indication that low gas prices don’t/won’t negatively impact electric car sales:

“Samsung SDI does not expect the slump in global oil prices to dent the long-term growth prospects for electric vehicles, an executive at the South Korean firm which makes batteries for these cars said…”

That’s according to a Reuters report, which cites Samsung SDI Senior Vice President Kim Jeong-wook as stating:

“The growth in electric vehicles until 2020 will come in response to various regulations being imposed by key governments in the United States, Europe and China as opposed to economic benefits like oil prices.”

Source: Reuters

Categories: General

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15 Comments on "Samsung SDI: Low Gas Prices Won’t Hurt Electric Car Growth"

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Lou Grinzo

I agree with the general conclusion, and I’m growing really tired of hearing people I know online and in the Real World think that cars with plugs will stop selling whenever gas prices drop. That reflects a horribly shallow understanding of why people, like many of us here, LOVE their electric cars.

Spin this forward, and imagine what happens when we hit the big knee in the curve for EVs, when battery prices start to get much more affordable. If that happens in, say, 2 or 3 years, what will the price of gasoline be by then? Almost surely higher than it is today, but it won’t really matter, because EVs will be so attractive that ICEs will look like dinosaurs.

pjwood1

EVs drive better. All it should take this guy is subjective judgement. That, and Reuters dropping the oil shill.

David

Lowering the price of a barrel of oil will make American and European governments even more determined to push for electric vehicles this is because they will not be held to ransom by the Arabs reducing oil prices just to hold of the competition from fracking

Just_Chris

Gas prices are not going to get me out of my Leaf any time soon. My off peak rate is 8.8c/kWh (AUD) that would mean that petrol would have to be selling for $0.2 – 0.25 /l for my running costs to be higher than a petrol car. Even at today’s “rock bottom” oil prices it costs about $1.2 /l.

In the end greed and the inevitable cost of unconventional oil is what has lead to us being where we are. If oil producing nations had kept oil prices below $100 a barrel rather than reducing supply and pushing the price up we would never have had the unconventional oil boom or EV’s on the the road (well not for a few years yet). Flooding the market now is just closing the door after the horses have bolted. All it is doing is crushing the investment in the oil industry. The next generation of PHEV’s and BEV’s will all be cheaper and have better performance.

I think high oil prices could change the rate of change but overall the sales will keep going up. Especially when power companies realise that they can make money from EV’s.

Ash09

Yeah, I don’t think these “low” gas prices will affect EV sales. It would have to hover around $1-$1.50 for years if they really want to stop EV sales.

But we know that won’t happen, because many OPEC countries will need that money, and selling gas that low will only hurt them in the pocketbook.

And then there’s that CAFE standard automakers have to reach. They probably won’t be able to meet that without hybrids and EV’s, especially if they’re relying on SUV and truck sales.

And that’s not even counting the lower carbon footprint an EV can have. Yeah, charging via coal plant is dirty, but what if you’re charging via solar later? A gas car will always emit pollution.

Not to mention how much more fun EV’s are to drive, and less things to fix on them due to their simpler designs compared to an gas engine.

All the low priced gas has evaporated!

Too late, the winter is holiday over, gasoline pump prices have all ready bounced … on fastest raise since pre-2009.
ie: pre-current generation EV’s

Jon

The very first sub $40k 200mile EVs are coming out in the next 2-3years, and the existing EVs will have a massive price cut. It wouldn’t matter is if the price of gas was low EVs will continue to grow until ICE cars are replaced entirely.

Jimmy Jim

I don’t get why everyone made a big deal when gas prices went down. It never stays low. I enjoyed relatively low prices for a couple months but prices have recently shot up ~$1/gallon. That’s gas prices for ya.

Chris O

Interesting technology road map. Surely those energy densities are at the pack level though, or is it really true that will take Samsung until 2019 to match Tesla/Panasonic cell energy density?

OTOH: if they do get 250wh/kg at the pack level in 2019 that would probably make Gigafactory output rather obsolete.

Alaa

Look guys, energy density progress will not stop even if the oil drops to $10. The reason is very simple. High energy density is needed for other applications like smart phones or even the lap top you are looking at right now. These products have nothing to do with the price of oil. Yet there is this hungry demand for a battery that will last longer, cheaper and lighter. So Saudi or no Saudi these cheap batteries with high energy density and a high C rating will come no matter what.

Lensman

It’s pretty meaningless to say “In the long term, the short-term drop in gas prices won’t affect sales of plug-in EVs.” Sure, in the long run, it’s inevitable that gas prices will go up while PEVs continue to improve and drop in price, partially or mostly due to improvements in batteries.

But certainly the dropoff in growth of PEV sales over the past couple of years, at least in the USA, is partly due to significant drop in gasoline/diesel pump prices. As the price of oil inevitably ascends again (is that already happening?), hopefully so will the rate of growth of EV sales.

goaterguy

Are we talking about the same “low” gas prices that crept up 40 cents (National average) within the last month? Riiiight… I checked my power rates and they stayed the same.

Speculawyer

And gas prices are not going to remain for years.

Bonaire

Prices are going to normally be tied to stockpiles of the product – whether oil or gasoline stocks. We are using less gasoline per mile and still growing stockpiles now so there is a possibility it will be lower for some time to come especially as people cut back on fuel usage per capita. Each EV sold lowers the gasoline demand on the stockpiles. Just as well, each job not created or each layoff cuts back on fuel usage as well.

I think that as more convert to hybrids and plug-ins, there will be slightly lower demand year after year ongoing and that will stabilize the price.

Unless there is war or other nasty stuff.

CherylG's_DirtyLittleSecret

These fluctuations of gas prices *IS* the reason to go electric!