BMW wants you to remember this concept as its “Heart of Joy” demonstrator, but for all intents and purposes, the Vision Driving Experience is more than just a cheesy prototype. It’s our best look yet at what the Bavarian brand has in store for us over the next few years with its Neue Klasse series of vehicles—both in design and underlying technology.

Yes, the company is quick to point out that the four-door “Vision Vehicle” is not destined for production, but there’s no denying that it looks suspiciously close to what we believe will become the next electric 3-seriess—likely adopting the i3 nameplate, much like the i5 and i7 models. And, with production of the first Neue Klasse-based car metaphorically around the corner (production of the iX3 starts later this year), it would be safe to assume that the Vision Vehicle gives us more than just a hint of the future.

Future Cars: Everything We Know About The 2027 BMW 3-Series With Neue Klasse Styling

But if it’s not strictly a production prototype, then what is it? Well, BMW says it’s a rolling test rig being used to develop the next generation of driving dynamics tech—i.e., all the electronic gubbins that not only keep a driver safe but also ensure that the Neue Klasse’s EV architecture maintains that signature BMW feel.

It’s got some serious power underneath, too. The Vision Vehicle is supposedly capable of generating an insane 13,269 lb-ft (17,990 Nm) of torque, though that number almost certainly comes from a creative method of measurement. Much like GMC’s approach with the Hummer EV, BMW is likely reporting torque at the wheels rather than the crankshaft, where gearing amplifies the figure to headline-grabbing levels. Still, BMW insists this extreme output is all in the name of maintaining everyday drivability.

Additionally, the test car visually demonstrates how the Heart of Joy is working through displays of color on the wheels: acceleration is indicated in green, energy recuperation in blue, and braking using the friction brakes in orange.

Neue Klasse, New Feel

BMW’s strategy is to ensure that its ICE and EV products look comparable—both inside and out—but each will have a distinctive feel. To make the new EVs feel as BMW-like as possible, though, the Vision Vehicle is being employed to fine-tune that, while serving as a rolling test bed of the new tech’s endurance.

That Heart of Joy control unit is in charge of the drivetrain, brakes, charging, energy recuperation, and steering. The boffins want everything to work as seamlessly as possible, and computing power is said to be ten times faster than it was before. That means millisecond changes of the vehicle’s parameters.

BMW says that a big part of this new tech is bringing the drivetrain and braking units under one roof of control. This increases sustainability thanks to less reliance on conventional brakes, a great percentage of energy recuperation, and a 25 percent increase in efficiency. In fact, BMW claims that the “brakes” will only be needed in an emergency stop situation, with regen taking care of the rest.

Clinical By Design

That’s the sustainability part out of the way. But BMW wants you to focus on the fact that having all these parameters communicate and be controlled by its “superbrain,” there are new levels of handling prowess unlocked, previously unreachable by the segregated systems.

See Also: BMW’s Neue Klasse Design Is Coming To All ICE Models

Drivers will need fewer driving inputs, with “exceptional levels of precision” and much greater levels of traction. Then, when you’re not feeling enthusiastic, the car’s direct signals will assist with low-speed driving, where Active Cruise Control, the parking brake, Auto Hold, and start-stop all sort of merge into each other.

More: BMW i3 Neue Klasse Sedan Spied For The First Time

But it all sounds rather clinical. With EVs already taking a certain amount of theatre away from the experience, the Heart of Joy superbrain sounds dangerously close to robbing drivers of any fun. BMW’s description of the driving experience being “Harmonious and Noiseless” at any speed doesn’t fill us with confidence either. An assured feel and exceptional corners abilities are alluded to —  but neither of those are what we’d call fun.

Of course, it’ll be some time before we get to try it out for ourselves, and the in-house development does sound impressive on paper. But until we get behind the wheel, here’s hoping the engineers have managed to dial in some of that traditional old-school “Ultimate Driving Machine,” feel into the Neue Klasse.

BMW is ready to strap in as it predicts a rollercoaster ride over the next few years when it comes to electrification. But unlike some of its peers, the company has been geared up to keep the internal combustion engine alive for some time to come. This multipronged approach may be of particular importance now, as the industry works out how best to navigate a new era – particularly in the US, where Donald Trump, who has been vocal regarding his opinion on electric vehicles, returned as president.

Read: 2027 BMW 3-Series: Everything We Know About The Neue Klasse

Speaking to the Financial Times, BMW board member Jochen Goller hinted that US sales of EVs may slow, but the company remains optimistic about gas-powered and plug-in hybrid numbers. And with 65 percent of BMWs sold Stateside being locally built, the company is less exposed to the risk of tariffs.

V8s Will Stay For The US

BMW’s approach to the future of powertrain development has been broader than that of some rivals, such as VW and Mercedes, who put more stock into an EV boom. However, the blue and white roundel’s strategy of continued investment into ICE and hybrid options, alongside EV development, has so far lent itself well.

The big news for fans of big engines is that BMW’s V8s will be sticking around, at least for customers in the US and Middle East. “There are markets such as the US and Middle East where you cannot replace V8s with inline-six hybrids,” said Frank Weber, a board member of BMW, speaking to Automotive News. “This is not about performance. They are comparable in terms of acceleration, but customers like the smoothness, sound and feeling of a V8. We will continue to offer V8s.”

Europe may not be so lucky, with the EU’s strict emissions regulations coming into play. However, Weber confirmed that some European markets will still be getting diesel-powered options for the foreseable future, with the Bavarian automaker continuing to develop the oil burners and looking for more ways to keep them clean.

Non-Segregated EVs Prove To Be A Hit

BMW may have learned from its toe-in-the-water experiment with the i3 that markedly differentiating their EVs from other cars in the lineup wasn’t a successful strategy. With its latest crop of EVs, the company has opted to make their EV offerings look far more similar to their combustion options.

Sales of its EVs rose by 13.5 percent last year and accounted for 17 percent of total volume. “We anticipated that people wouldn’t want to be discriminated against because of the power train,” Goller said. “We’ve gone the path which others are now following.”

That trend is set to continue as BMW launched its Neue Klasse platform, with plans to introduce their software-heavy EVs alongside combustion and hybrids, with all models `retaining the same character` despite adopting different types of powertrains.

The all-electric 2025 Jeep Wagoneer S now has a new, more affordable entry-level model. The “Limited” trim debuts at this week’s Chicago Motor Show, offering a $5,000 savings compared to last year’s Launch Edition. Prices start at $66,995 (including the $1,795 destination fee), down from the Launch Edition’s $71,995 price tag with delivery. However, it’s worth noting that the Launch Edition is currently available with a $3,000 discount until March.

Prior to this, the Wagoneer S was only available in the fully loaded Launch Edition, which came packed with a 600-hp electric motor, a McIntosh 1,200-watt sound system, and an expansive touchscreen infotainment setup. But with the arrival of the Limited trim, Jeep is taking a more à la carte approach, offering fewer standard features in exchange for a lower price tag.

Pay to Unlock Full Power? Yep, That’s a Thing Now

The new Limited version of the Wagoneer relegates many of those features to the optional extra list, including the Launch Edition’s impressive 600 hp (447 kW) output. Although the new entry-spec Limited model comes with the same mechanical hardware, with a pair of electric motors and four-wheel drive, the Launch Edition’s full 600 hp (447 kW) is locked away behind, well, a paywall.

Read: Electric Jeep Wagoneer S Fire Sale Has Begun With Discounts In Excess Of $12k

That’s right. The 2025 Jeep Wagoneer S Limited is quite literally limited to the lower output of 500 hp — that is unless you want to drop an as-yet undisclosed figure to unlock all 600 hp via an “Over The Air” upgrade named the Propulsion Boost Package. That also means that the 3.4-second 0–60 mph (0–96 km/h) time of the Launch Edition drops to what Jeep estimates will be “under four seconds” for the Limited model.

What Do You Lose (and Gain) with the Limited?

While the Mcintosh audio system and front passenger screen become optional extras on the Limited, there’s a new Hydro Blue exterior color to choose from and an Arctic Grey interior color. Other standard features include the dual-pane sunroof, 20-inch alloy wheels, 10-way heated seats, and over 170 safety features. And, being a Jeep, you get to take advantage of the company’s Selec-Terrain 4xe traction management system with different programs for different conditions.

More: 2026 BMW iX Facelift Debuts Cheaper $75k Base Model, New Grilles

No range figures were quoted, but with a lower power output as standard, it’s fair to assume that the new Limited model may be able to eke out a few extra miles over the Launch Edition’s 300-mile (482 km) range. The Wagoneer S can be recharged from 20–80 percent in 23 minutes via a DC fast charger, and all models will even be supplied with either a 48-volt Level 2 home charger or public charge credits from Stellantis’ Free2move ecosystem.

The 2025 Jeep Wagoneer S is now available to order online and will be arriving in Jeep dealerships throughout North America shortly, with a starting MSRP of $66,995 (including $1,795 destination). The 2025 Wagoneer S will also qualify for the Inflation Reduction Act lease EV credits ($7,500 for retail and lease purchases).

BMW’s EVs have been showing promise lately, with sales on the rise and plans for its fully electric lineup to make up more than half of total sales by 2030. However, one model that has struggled to hold consumer interest is the iX mid-size SUV, which started to feel a bit stale having been in the market since 2021.

To inject some life, BMW has presented the facelifted iX, with changes to its model hierarchy, exterior and interior updates, and some tweaks under the hood that result in a claimed 10 percent efficiency boost for the xDrive60 volume seller. Crucially for just about every potential owner, power is up over the outgoing model, as is range.

New Model Lineup

The 2026 iX gets a refreshed range of models, including a new entry-level spec. For starters, the models previously known as the xDrive50 and M60 have been bumped up to become the xDrive60 and M70, respectively. This is to reflect their (*cough* relatively modest *cough*) increased outputs, but also — perhaps unintentionally — serves as another way to differentiate pre-facelift vs. post-facelift models.

Read: BMW i5 Gains Range, X3 And 2-Series GC Get New Engines For 2025

The xDrive60 gets 536 hp (400 kW / 543 PS) — up from the xDrive50’s 516 hp (385 kW / 523 PS) , while the M70 gets 650 hp (485 kW / 659 PS), 40 hp more than the M60. The xDrive60 will do the 0–60 mph (0–96 km/h) sprint in 4.4 seconds, with a top speed of 124 mph (200 km/h). The M70 can get to 60 mph (96 km/h) in 3.6 seconds and on to a top speed of 155 mph (250 km/h).

That’s all well and good, but we suspect that most people will be more interested in the range improvements, with the new xDrive60 getting a 340-mile range (547 km), which is an increase of around 30 miles (48 km) from the previous model. The M70 sees a similar bump, with 302 miles (486 km) on the board as opposed to the 285 miles (458 km) of the M60. Range figures quoted are on the EPA test cycle.

Meet The Entry xDrive45

Okay, so this update isn’t exactly earth-shattering by the performance metrics. What may be more interesting to sales numbers is the introduction of a third model that will sit below the xDrive60. The xDrive45 comes to the US market, offering 402 hp (300 kW / 408 PS) and a 312-mile (502 km) range. It’ll even do the 0–60 mph (0-96 km/h) run in a not-too-shabby 4.9 seconds.

The xDrive45 doesn’t ditch a motor or sacrifice all-wheel drive, but instead packs a slightly less potent rear motor and sacrifices a bit of charging speed. Crucially, the starting MSRP will be almost $13,000 cheaper than the xDrive60, with the new entry-level iX priced at $75,150 before a $1,175 destination and handling fee.

Exterior Changes

The iX is still very much an iX, with no significant changes to the exterior design. If anything, the design language — Bugs Bunny grille notwithstanding (now available with illumination, yay) — has become slightly more restrained. The regular models now sport a grille with an internal diagonal treatment similar to other recent BMWs like the X3, while the M70 adopts a pattern reminiscent of the M3 and M4. There are lots of little tweaks around the car, but the main difference you’ll notice is the more seamless front and rear aprons. They’re less messy, with less contrasting black plastic.

Read: BMW Builds First ‘Near Series’ Neue Klasse iX3 SUVs

There are subtle differences for the M70, too, with Shadowline (BMW-speak for black) headlights and taillights, which can also be optioned with the M Sport and M Sport Professional packages. What the M70 gets exclusive to itself is a unique grille, black mirror caps, and exclusive alloy wheels.

Speaking of wheels, the iX comes with 20-inch wheels as standard, while 21- and 22-inch wheels are optional — but only if you go for one of those M packages. Meanwhile, the M70 can be optioned with 23-inch wheels for the first time, while the 21- and 22-inch rims feature 70 percent secondary aluminum, and all of those alloys get plastic inserts for aero-efficiency.

Better Seats And Climate Package

The interior remains a familiar place, with BMW’s curved display, Operating System 8.5, and other tech aspects remaining the same as before. The most significant change inside the 2026 iX is the addition of the new New M Multi-Function seats — they’re standard on the top-of-the-line M70, but to get these enhanced captain’s chairs on the xDrive45 of xDrive60, you’ll need to plump for the M Sport Package.

BMW says the seats get pronounced contouring and improved lateral support with a range of adjustments, including backrest width, lumbar support, and active seat ventilation. They come in a variety of materials, such as microfibre/Sensatec in Atlas Grey/Black with M-specific stitching, Amido natural leather, or Castanea natural leather.

Advances have been made to the heating in the BMW iX, too. There’s a new, more efficient heat pump that allows waste heat from the drivetrain, battery, and surrounding air to be used to warm the cabin. It can also be used to warm the iX battery and driver system as another way of extending the range of the iX.

There’s a new Climate Comfort Package in the 2026 BMW iX that takes full advantage of these advances for cold climates. This package includes seat heating for both the front and rear seats, a heated steering wheel, and a heated armrest. Additionally, it incorporates a 4-zone automatic climate control system, allowing each passenger to customize their preferred temperature settings independently.

Pricing And Availability

While the introduction of the xDrive45 to the 2026 BMW iX range lowers the model’s base MSRP to $75,100, the xDrive60 will start at $88,500 — that’s an increase of $1,250 over the 2025 xDrive50. However, the M70 retains the same starting MSRP of $111,500 as the M60 it replaces. All prices, as mentioned above, do not include a $1,175 destination and handling fee.

The 2026 iX will begin production at BMW’s Dingolfing plant in Germany in March 2025, and deliveries are expected to commence in the second quarter of this year.

From being dogged by a data leak scandal last month to facing the ire of US dealers who want a piece of the Scout pie, it’s been a challenging few weeks for the Volkswagen Group. Let’s not forget that the brand enters 2025, reeling from layoffs as the company attempts to plug an overcapacity crisis in a bid to secure VW’s long-term future.

Things do seem bleak for the second-largest auto manufacturer in the world. Perhaps it was always going to get worse before it got better. And Volkswagen AG realizes that it’s on track to be penalized by some truly monumental fines from the European Union.

A $1.6 Billion Bill Is Coming

Speaking to analysts on a call on Wednesday, VW’s head of investor relations, Rolf Woller, spoke about potential penalties for exceeding the EU’s emissions targets. The company estimates that, if they are to fail in meeting those targets, they’ll be landed with a 1.5 billion Euro ($1.6 billion at current exchange rates) bill.

Read: VW Slashes Manager Bonuses By 10% For Two Years, Plans More Cuts Through 2030

And it’s looking increasingly likely that they won’t be able to meet the EU’s target. Volkswagen didn’t launch any new EVs last year, nor will they offer anything this year. Instead, we’ll have to wait until 2026 until the new ID.2 makes an appearance. Bloomberg relates how Woller also spoke on VW’s shrinking bottom line, which is further eroded by VW having to sell more EVs at the expense of more profitable combustion-engine models.

Meanwhile, demand for EVs across Europe is waning. Despite the increase in electric vehicle sales across the globe, the slowdown in segment growth hasn’t been as anticipated, with key regions such as Germany and Italy slashing EV subsidies. Meanwhile, VW’s existing battery-powered offerings are facing stiff competition from cheaper Chinese alternatives.

Manufacturers Ask The EU To Be Lenient

VW isn’t the only company that has raised the alarm over the European Union’s strict emissions targets. Earlier this year, some of the world’s largest automakers announced they wanted to pool their EU emissions with Tesla in a bid to avoid the proposed fines.

More: Toyota, Stellantis, Ford, And Mazda May Pay Tesla $1 Billion To Avoid EU Emissions Fines

According to documents released by the EU Commission, Toyota, Ford, Mazda, Stellantis, Subaru, and Leapmotor intend to create a ‘Superpool’ with Tesla. Meanwhile, Mercedes-Benz is looking to pool with Smart, Volvo, and Polestar. As of now, VW hasn’t announced any plans to pool with any other manufacturer’s fleets.

For a company that is undergoing some fairly intense restructuring under CEO Oliver Blume, the looming bill from the European Union comes at a somewhat inopportune time. Either way, analysts will be keen to observe how the industrial giant that is Volkswagen AG tackles the next two years.

If you’re on the fence about picking your next new car, safety is likely a significant consideration. And if you’re thinking about switching to an EV from an ICE, you may wonder just how much safer (or riskier) electric cars are over their combustion counterparts. It’s precisely this question that the folks over at ANCAP (Australasian New Car Assessment Program) have been trying to answer, and the results may be surprising.

Armed with data from their own crash tests, ANCAP has ruled that, yes, EVs score proportionally higher on crash tests than ICE vehicles. But that comes with a caveat: namely, the operative phrase being “proportionally higher.”

Read: These Two Cars Managed To Earn A Shocking Zero-Star Safety Rating

Put simply, there are 57 EVs that have been tested by ANCAP, with only six of those falling short of the maximum score. But when it comes to ICEs, the pool is larger: of 117 combustion-powered cars, 18 fail to get full marks.

While statistically there are more five-star EVs than five-star ICE cars that have been tested (around 89 percent vs 85 percent), the difference isn’t that great. There are a few other factors to consider too. Firstly, most electric vehicles are relatively new models. Newer cars equals newer safety tech, which can often swing it in these tests. In addition, most of the EVs that are tested feature a higher MSRP, and will naturally come loaded to the rafters with crash protection.

Meanwhile, fighting in the ICE pool are cheaper entry-level cars that have fallen short of ANCAPs tests, with the Mahindra Scorpio, MG5 (zero stars each), and Suzuki Swift (one star). Three star ICE cars like the Hyundai i30 Sedan, MG3, Jeep Gladiator, and Jeep Wrangler failed to help the cause.

Meanwhile, there are no zero-, one-, or two-star awarded EVs on sale in Australia and New Zealand. The lowest you can get are four star examples, specifically the BMW i4, Hyundai Kona Electric, Fiat 500e, Opel Mokka and Citroen C4 (the last two only on sale in NZ). The sole three-star EV on sale down under is the Jeep Avenger.

Speaking to Drive, ANCAP Chief Executive Officer Carla Hoorweg said that the disparity seen between EVs and ICEs isn’t that big when it comes to overall safety. But when it comes to price, with EVs being more expensive, it just doesn’t make sense to sell a low-scoring electric car: “I would say there’s also probably a factor of play there where… how are you going to go from a sales perspective if you’re bringing a one-star EV into Australia – it’s an expensive product.”

Sales of EVs around the world have been somewhat inconsistent in 2024. While the US and China recorded strong growth, countries in Europe have reported slowdowns, with German sales crashing by 28 percent and Australia reporting similar declines.

Now it seems it’s Japan‘s turn, as in 2024, electric vehicle sales plummeted by a staggering 33%, marking the first decline in four years. With just 59,736 units sold, EVs now account for less than 2% of all vehicle sales in the country – an eyebrow-raising contrast to overall global markets where sales rise, albeit, in some of them, not at the rate initially anticipated by many automakers.

See Also: Carlos Ghosn Claims Japan Forced Honda Into ‘Desperate’ Nissan Merger Talks

A report from Nikkei Asia tells us that Nissan Motor, which dominates half of the country’s EV market, suffered a massive blow. Sales nosedived by 44% to 30,749 units – the lowest since 2021. Toyota didn’t fare much better. Despite a modest 10% bump in sales of its bZ4X (a pricey proposition starting at 5.5 million yen, or $34,755), the automaker’s overall EV sales dropped by 30%. Meanwhile, Mitsubishi Motors recorded a shocking 64% drop in EV sales, while the Honda e was axed and won’t get a successor.

The Reasons Behind Japan’s EV Slump

So what caused EVs to plunge last year? The key reason is hybrids. Japan remains loyal to its hybrid vehicles, which offer fuel efficiency without the higher price tag of EVs. Combined with the limited infrastructure, many consumers still aren’t sold on going fully electric.

Meanwhile, foreign automakers have been quick to spot opportunities in this underperforming market. BYD, the Chinese EV powerhouse, posted a 54% increase in sales, driven by the success of its Seal sedan and the affordable Dolphin EV, starting at just 2.99 million yen.

While BYD still trails local giants like Nissan, its sales are now 40% as high as Tesla’s, which remains the top imported EV brand in Japan. South Korea’s Hyundai also made headway, with EV sales climbing 24% thanks to updates to its Ioniq 5 lineup and plans for a smaller, budget-friendly EV in 2025.

What’s Next for Japanese Brands?

Japanese automakers may have been pioneers in hybrid technology, but their sluggish response to the EV boom is proving costly. Foreign brands are stepping in to fill the gap, both locally and worldwide, capitalizing on price-conscious buyers and offering models that are competitive in both cost and tech.

For now, hybrids continue to dominate Japan’s roads, but the winds of change are blowing. As EV sales were up 25% up globally in 2024 vs 2023 and are projected to rise by 30% this year, while at the same time international players like BYD and Hyundai push harder, Japanese brands may need to rethink their strategy, or risk being left in the rearview mirror.

Hot on the heels of the company’s retro-name revival that has already included the likes of the Integra and the Honda Prelude, Acura has announced the comeback of the RSX. The catch? Well, it’s nothing like the RSX you might remember from your early 2000s daydreams.

This time around, the new RSX adopts an SUV body and will be Acura’s first model to ride on an all-new dedicated EV platform. Unlike the Acura ZDX, which borrows its underpinnings from General Motors, the RSX will ride on Honda’s newly developed in-house EV architecture, a significant step forward for the automaker’s electrification plans.

Read: Acura Plots Electric Future To Reverse Declining Sales And Reignite Brand Appeal

The introduction of the RSX is part of Acura’s plans to claw itself back up the sales charts. The automaker lost market share to competitors in 2024, as multiple models recorded double-digit drops in 2024. This will be only the second production EV to appear with an Acura badge on it, with executives highlighting the need for more battery-electric offerings.

A New EV Platform From Honda

The Honda-developed EV platform has already been shown off at CES 2025, underpinning the Honda 0 Series Saloon and SUV prototypes that will evolve into production models next year. Honda’s aim with its new EV platform will be to create lighter vehicles, as well as to reduce the overall height that most EVs require to fit their batteries inside the floor.

The new Acura RSX will also be the first EV produced at Honda’s new “EV Hub” in Ohio. The facilities at the Marysville Auto Plant, the East Liberty Auto Plant, and the Anna Engine Plant are undergoing a $700 million makeover and retooling. The Anna Engine Plant will be where the megacasting for Honda’s new Intelligent Power Unit (IPU) is made.

The IPU is a big step forward in Honda and Acura’s ambitions for EVs, serving as an integral part of the new EV platform. It’s also much larger than anything that Honda has die-cast before, and the initial development in North America, using domestic and globally sourced parts, is a win for American manufacturing.

Coupe Dreams Dashed

When news broke that the RSX name had been trademarked, first in Japan and then in the U.S., many predicted that the reborn nameplate would be affixed to a sporty coupe. Although the Integra nameplate has been revived, the fact that it’s attached to a four-door sedan rather than a sporty coupe has been a sore point for longtime fans of the brand. The fact that Honda has revived the Prelude name even made some wonder if the new Acura RSX would be a more premium riff on the new coupe.

See: Honda Trademarks RSX Name In Japan, Is Another Icon Returning?

Instead, Acura takes a leaf from Mitsubishi by turning one of their beloved coupe nameplates into an SUV. When asked by CarScoops as to why the company opted to revive the RSX name for an electric SUV and not a sports car, a spokesperson said, “We believe RSX is the right name for our new all-electric SUV. This isn’t a “revival” of the previous RSX coupe. Globally, that model was sold and marketed as Integra, and we have seen resounding fan enthusiasm for the 5th gen Integra  — especially with the Type S.”

The RSX is said to take inspiration from the speedboat-like Performance EV Concept. From the one image we’ve been furnished with, it appears the new model retains some of the elements of the concept but goes for an overall more conventional approach.

The dramatic NSX-inspired rear appears to have given way to something more reminiscent of a BMW X6 or Tesla Model Y. Meanwhile, the coupe-like roofline has been profiled to be, well, less coupe-like. Still, it’s early days.

Acura hasn’t confirmed a firm on-sale date, but prototypes of the all-electric RSX will begin real-world testing this week. What we do know is that it’ll be the first car from either Honda or Acura to be built on the new EV platform at the Ohio EV Hub, so expect to start seeing the new RSX in showrooms in early 2026.

Everyone loves a good “breakthrough” headline about electric vehicles, especially the kind that promises they’ll finally stop costing as much as a mid-sized house in Ohio. Well, here’s one for you: according to a new study, the price of lithium batteries has fallen greatly, recording the most significant drop in seven years. The need for cheaper batteries is often cited as one way to speed up adoption, with experts waiting for EVs to achieve price parity with combustion vehicles.

Lithium-ion battery pack prices have cratered thanks to an oversupply of cells, as well as lower prices for the raw metals and other components used in manufacturing. The BloombergNEF survey covered 343 data points, encompassing electric cars, buses, and commercial vehicles.

Price Parity By 2026

The quest for electric vehicles to become as affordable as their internal combustion engine counterparts will be the true litmus test for widespread adoption. If the trend we’ve witnessed this year continues, we could see the much-vaunted price parity between electric vehicles and gas-powered cars becoming a reality for consumers as soon as 2026.

See: GM Sells $1 Billion Stake In Joint Battery Plant To LG

Currently, the average cost of a battery pack sits at $115 per kWh — a 20 percent decline from last year. Pricing will need to drop by $15 to $100 per kWh for that magical price parity, although according to the report from Bloomberg, that’s already happened in China, with some EVs selling for cheaper than their combustion counterparts.

There’s Still Some Way To Go

While BNEF predicts battery pricing will drop below $100 per kWh by 2026 and down to $69 per kWh by 2030, there are geopolitical and macroeconomic factors that may further impact these projections.

However, there will still be a “chicken and egg” situation, where the production of EV cells remains heavily dependent on car sales. While there has been an oversupply of cells recently, partly due to a slowdown in EV sales growth in some markets, manufacturers may begin to reduce production as a result, too.

Government Actions and Tariffs Threaten EV Progress

There are also other factors that may affect the road to price parity. European governments are slashing their EV subsidies, which, in Germany at least, has led to a significant drop in sales for 2024. Meanwhile, in the US, incoming President Donald Trump has threatened to impose 60% tariffs on Chinese imports and 10%-20% tariffs on those from other countries. His transition team is also pushing for Congress to repeal the $7,500 electric vehicle tax credit. If successful, this could severely impact most automakers, even though Musk believes it may ultimately benefit Tesla.