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Technology report
Nov 2025
What Next for the Global Car Industry Pathways to global EV cost-competitiveness
Highlights The gap in competitiveness in electric car manufacturing between new market-entrants located in China and incumbents in other countries has grown in the past 5 years. Battery electric car production costs are over 30% lower in China than in advanced economies, and around a third of the difference can be attributed to the battery. However, a similar production cost gap exists for conventional cars. Battery cell prices are, on average, over 30% lower in China than in Europe and over 20% lower than in the United States. Reducing the manufacturing cost gap is possible – half is due to efficiency…
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Contributor
Joerg Husar
Latin America Programme Manager and Senior Advisor for Strategic Global Energy Dialogue.
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Contributor
Andrew O'Callaghan
Senior Policy and Programme Evaluator, Sustainable Energy Authority of Ireland (SEAI). Andrew O’Callaghan is a Senior Policy and Programme Evaluator at the Sustainable Energy Authority of Ireland (SEAI). He works on developing evidence and data models to assess the impact of national retrofit and energy efficiency programmes. Andrew has a background in applied psychology and carbon management, and has previously worked in behavioural economics and energy modelling. His work supports the design of more effective and inclusive policies to advance Ireland’s climate and energy goals.
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Contributor
Sara Moarif
Head of Environment and Climate Change (ECC) Unit. Sara Moarif has been head of the Environment and Climate Change Unit at the IEA since late 2019. In this role she oversees a range of internal and external work on energy and environment policy issues, from carbon pricing systems in the power sector to the climate resilience of energy systems, along with IEA participation in the OECD-IEA Climate Change Expert Group and parts of the IEA's international climate-related engagement.