VW exec says battery costs below $100 per kWh: report

A Volkswagen executive cited in a New York Times report said the automaker pays less than $100 per kWh for its batteries.

That price has been cited as a possible inflection point that would allow for the mass adoption of electric vehicles.

The battery pack is the most expensive part of an electric vehicle. Battery costs are the biggest obstacle to driving electric-vehicle production costs down to a level that would allow automakers to sell them at affordable prices without hurting overall profit margins.

Tesla CEO Elon Musk suggested last year that Tesla was close to crossing the $100-per-kWh threshold for its batteries, but the electric-car maker has not confirmed if it has reached that point yet.

Volkswagen has reached an important milestone in reducing the battery costs for its electric vehicles, according to a report from The New York Times.

An unnamed Volkswagen executive told the publication that the automaker pays less than $100 per kWh for its batteries, a landmark that has been cited as a possible inflection point that would allow for the mass adoption of electric vehicles.

Volkswagen did not immediately respond to Business Insider's request for comment.

Read more: Elon Musk says Tesla's pickup truck is now delayed until November

The battery pack is the most expensive part of an electric vehicle, and battery costs are the biggest obstacle to driving electric-vehicle production costs down to a level that would allow automakers to sell them at affordable prices without hurting overall profit margins.

Tesla, which produces batteries with Panasonic at its Gigafactory in Nevada, has been seen as the leader in electric-vehicle battery technology and cost. In June 2018, its CEO Elon Musk, said the electric-car maker would possibly cross the $100-per-kWh threshold by the end of that year, but it has not disclosed since whether that has happened. In June of this year, Musk suggested that Tesla's battery costs were lower than those of its competitors, but he did not specify the company's cost per kWh.

Tesla did not immediately respond to a request for comment.

See also: Apply here to attend IGNITION: Transportation, an event focused on the future of transportation, in San Francisco on October 22.

Volkswagen's reported claim about battery costs came just before it unveiled the production version of its ID.3 electric hatchback, the first vehicle to be produced by the company using a platform designed specifically for electric vehicles. The ID.3 will go on sale in Europe later this year, though Volkswagen has not said if it will sell the ID.3 in the US.

In the wake of its Dieselgate scandal, in which Volkswagen admitted in 2015 to installing software on around 11 million diesel-powered cars to cheat emissions tests, the company has set ambitious goals for electric-vehicle investment. Volkswagen said in March that it plans to invest over $30 billion in electric vehicles by 2023 and introduce nearly 70 new electric models by 2030.

Read The New York Times' full story here »

Are you a current or former Tesla employee？ Do you have an opinion about what it's like to work there？ Contact this reporter at mmatousek@businessinsider.com.

Read more:

A new video shows a Tesla driver who appears to be asleep while driving down the Massachusetts Turnpike

In the battle of the Tesla Model S and the Porsche Taycan, it's really no contest

An analyst who thinks Tesla is worth $0 sees even more bad news in August's delivery numbers

Elon Musk says he wants to put a Tesla Model S on the legendary Nürburgring race track in Germany. Here's what that's all about.